Finance Chief Ofori-Atta pledges commitment to fiscal discipline this election year
Ghana’s Finance Minister, Ken Ofori-Atta, has underscored his personal commitment to fiscal discipline, emphasizing a proactive approach to avoid budget overruns in the lead-up to the December 2024 elections.
Ghana is known to usually overspend during electioneering years resulting in major fiscal slippages.
This is even after the country has made significant strides in fiscal consolidation and revenue enhancement in the years prior to the election year.
In an interview on Joy News’ PM Express, Mr Ofori-Atta highlighted the substantial progress in inflation reduction, moving from 54.1% in December 2022 to approximately 23.2% in December 2023, attributing this achievement to fiscal prudence.
Addressing concerns, Ofori-Atta stated that the Ministry of Finance’s primary focus is not popularity but rather ensuring the economic well-being of the nation.
Mr Ofori-Atta acknowledged the collaborative effort with the Bank of Ghana, asserting that monetary policy tools are actively employed to further decrease inflation rates. He affirmed a commitment to stringent fiscal policies.
“We have moved inflation from over 54.1% in December 2022 to about 23.2% in December 2023 and you think that did not come with exercising some fiscal prudence? The Ministry of Finance is not here to be loved, but to make sure that the community crosses the Jordan.
“We want to ensure that the right things are done going forward as a country. If the expenditure does not fall in line with the budget, I will not sign the cheque.
“I think the country is aware of the cost of inflation and cedi depreciation and we are going to do everything on our part to ensure that things don’t go bad,” he stated.
Emphasizing adherence to fiscal policies in the upcoming 2024 budget, he reiterated the government’s dedication to maintaining fiscal discipline and achieving targeted economic objectives. He acknowledged the potential challenges during an election year but assured that rigorous measures have been implemented to contain spending, reflecting in the positive trajectory of inflation rates.
Looking ahead, the Finance Minister articulated confidence in meeting the 2024 end-of-year inflation target of 15%. Despite acknowledging the difficulty of introducing new tax measures, Mr Ofori-Atta stressed the necessity of addressing Ghana’s tax-to-Gross Domestic Product (GDP) ratio, expressing the government’s commitment to taking essential steps to enhance revenue generation.
“We are still not doing well when it comes to Ghana’s tax-to-Gross Domestic Product (GDP) ratio and something has to be done about it”, he remarked.
Mr Ofori-Atta further expressed optimism regarding Ghana’s ongoing program with the International Monetary Fund (IMF), foreseeing positive outcomes.
