World Bank Country Director talks fiscal measures in mid-year budget review
Pierre Laporte, the Country Director of the World Bank, has outlined key expectations from Ghana’s upcoming mid-year budget review, scheduled to be presented by Finance Minister Ken Ofori-Atta on July 25.
During a press briefing on July 14, 2023, Mr. Laporte stressed the importance of fiscal measures to address Ghana’s economic challenges, while also iterating the World Bank’s plan to provide $300m in budget support to the government.
Speaking to journalists, Mr Laporte noted that the World Bank is anticipating that the Government will prioritize increasing domestic revenue as part of its fiscal measures, aiming to align with its counterparts in the ECOWAS region.
Mr. Laporte also highlighted the need for efficiency in expenditure rather than expenditure cuts in the budget review, emphasizing the World Bank’s focus on optimizing spending for better outcomes.
Collaborating closely with the government, both the World Bank and the International Monetary Fund (IMF) are working to assist Ghana in raising domestic revenue, recognizing that the country’s revenue levels lag behind those of its ECOWAS peers.
“The World Bank and IMF are working closely with Government to help Ghana raise domestic revenue as part of the fiscal measures in the mid-year budget review as its domestic revenue is low compared to its ECOWAS peers. We have also been looking at Government expenditure, and it’s not about cutting expenditure but rather about making expenditure efficient,” he stated.
Mr. Laporte further revealed that the World Bank plans to provide budget support of approximately $300m to Ghana. This funding represents the first tranche of a total $1bn budget support package. The disbursement of funds is expected to take place in September 2023.
While specific details regarding the allocation were not disclosed, the World Bank’s funding is anticipated to be directed towards key sectors outlined in Ghana’s 2023 budget, such as energy sector, infrastructure development, education, healthcare, agriculture, and support for the private sector. These targeted investments aim to address critical areas for economic growth and development.
Meanwhile, Finance Minister Ken Ofori-Atta is set to present the mid-year review of the budget statement for the 2023 Financial Year to Parliament on July 25, 2023. This presentation, in accordance with the provisions of the Public Financial Management Act, 2016 (Act 921), provides an opportunity for the government to address economic challenges and outline its plans for sustainable fiscal management.
