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Business News of Tuesday, 27 October 2020

Source: www.ghanaweb.com

Be conventional with spending estimates in advanced budget for Q1 2021 – Economist

An economist, Dr. Lord Mensah has urged the government to be conventional with its spending estimates at least in the first three months of 2021.

The suggestion comes ahead of the Finance Minister’s presentation of an advanced budget dubbed the Expenditure in Advance of Appropriation.

The economist speaking with Citi Business News reiterated the minister’s presentation must align with that of government’s income projections.

“I don’t expect government to expend more a year after an election, especially the first quarter after an election. The reason being that already before the election, the budget review that we had, the intention to spend more was clear, for which the Finance Minister even proposed a review of the Fiscal Responsibility Act. So, going forward I think we need to tone down. I prefer that we adopt that conserved nature. If I say conserved nature what I mean is that we should cut our expenditure according to the revenue that we generate,” Lord Mensah said.

The upcoming budget presentation before Parliament on Wednesday, October 28, 2020 forms part of a mandated practice usually conducted in election years.

The presentation is intended to prevent transitional encounters in the affairs of the central government for the first three months after the general election.

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