Prof Bokpin calls for clear poverty and inequality reduction targets in 2023 Mid-Year Budget Review
In anticipation of the 2023 mid-year budget, Professor Godfred Bokpin, has emphasized the need for clarity on a range of critical issues confronting the country.
During the NorvanReports’ Townhall Twitter Space Conversation on the topic “2023 Mid-Year Budget: Concerns and Expectations,” Prof Bokpin underscored the importance of the budget review in providing insights into Ghana’s economic outlook and the strategies intended for economic recovery.
Of particular significance, Prof Bokpin called on the government to set forth distinct and specific targets in its approach to combat poverty and inequality, highlighting recent data from the World Bank, which revealed that nearly 850,000 Ghanaians were pushed into poverty at the close of 2022, and with 23% and 44% of Ghana’s population categorized as consumption and multi-dimensionally poor respectively by the Ghana Statistical Service (GSS).
“We must have clear targets for these things and not focus solely on GDP growth, because you could have your GDP grow but then also have poverty and inequality increase,” Prof Bokpin asserted.
Additionally, the prominent economist expects the mid-year budget review to tackle the pressing issues of core inflation and food inflation, which have significant implications for the country’s economic landscape.
The upcoming budget presentation, scheduled for July 27, 2023, will also be scrutinized in light of Ghana’s engagement with the International Monetary Fund (IMF) programme.
Prof Bokpin raised concerns over the fiscal adjustment outlined in the programme, as it falls short of the necessary 12% of GDP required by Ghana to effectively reduce its debt-to-GDP ratio and achieve debt sustainability by 2028.
“Per the IMF programme, fiscal adjustment is just 5%, but if we are to attain debt sustainability by 2028, a fiscal adjustment of not less than 12% of GDP is imperative,” he cautioned, pointing out that creditors now shoulder the burden of ensuring Ghana’s debt sustainability in the wake of the relatively modest fiscal adjustment.
As the nation eagerly awaits the mid-year budget review, stakeholders and investors alike are keen to observe the government’s commitment to addressing poverty, inequality, and inflationary concerns, while striving to achieve robust economic recovery in the face of prevailing challenges.
