Ofori-Atta identifies 5 constraints to economic growth

Finance Minister Ken Ofori-Atta has identified five main challenges the Akufo-Addo government will overcome in order to build the most business-friendly and people-centred economy in Africa which will translate into job creation for all Ghanaians.

Presenting the 2017 budget statement in parliament on Thursday 2 March, Mr Ofori- Atta said “Low revenue collection, expenditure overruns and corruption, high wage bills, rigidity of fiscal structure caused by heavy earmarking of tax revenue, and high debt service payments were the five constraints to government’s commitment to develop the country and to make life easier for the citizenry.

“Our goal is to build the most business-friendly and people-centred economy in Africa which will translate into job creation and prosperity for all Ghanaians.”

He noted that government “will strike the right balance between fiscal consolidation and growth by making credible policy choices that will create the fiscal space to implement growth-enhancing initiatives”.

“Mr Speaker we intend to build a partnership with labour that will result in a social contract to mark an era of peace which will mutually enhance the productivity of our workforce,” he added, but was quick to add: “This commitment, however, is hampered by five constraints which we need to overcome – low revenue collection, expenditure overruns and corruption, high wage bills, rigidity of fiscal structure caused by heavy earmarking of tax revenue, and high debt service payments.”

The Finance Minister noted that the 2017 budget would address the constraints.