Economy Facing Difficulties ?

A confidential information paper submitted to Cabinet by Mr Osafo Maafo, Minister of Finance reveals failures and difficulties in the economy. The information paper dated June 27, 2003 and signed by Mr Maafo reviewed areas such as Tax revenues, Grants, HIPC Relief, Overall budget balance among others.

Below are excerpts of the report:

Background

1. Further to my Cabinet Information Paper on March 31st 2003, I submit this report on the provisional overturn for the month of April 2003.

2. Summary of Performance

• Tax revenues were slightly lower than programmed by ?1.8 billion.

• Grants were below target on account of low inflows of project grants.

• HIPC relief was higher than expected.

• Overall budget balance showed a lower deficit of 0.1 per cent of GDP, against a programmed deficit of 0.2 percent of GDP.

• Domestic Primary balance recorded a higher surplus of 0.2 per cent of GDP, compared to a target surplus of 0.1 per cent of GDP.

• Net Domestic Financing of Budget was significantly lower than programmed.