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Business News of Sunday, 21 July 2019


Mid-year budget to supplement state funds for social, economic policies

The government has said the July 29, the mid-year budget will among other things focus on adding to state revenue to fund the outstanding programs for social and economic policies.

Addressing Journalists in Accra on Sunday, the Minister for Information Kojo Oppong Nkrumah said the mid-year budget review will present the opportunity to take a second look at revenue availability to execute the remaining programmes.

“This is why revenue mobilization which was highlighted in the 2019 budget will remain a key feature in the mid-year review.”

“The objective will be to ensure that the government mobilizes enough resources to fully deliver on the outstanding commitments.”

Mr. Nkrumah added that the government was hopeful of cutting out avoidable expenses while shoring up revenues.

This is to create more fiscal space to fully fund and execute the outstanding programs in the medium-term expenditure framework.

The country’s Financial Management Administration Act requires the Finance Minister to come before Parliament not later than July 31, to prepare and submit a Mid-Year Fiscal Policy review.

The review features estimates outlined in the Budget that the finance minister presented for the financial year in question.

Indications are that some macroeconomic targets set in 2018 will be reviewed in the minister’s presentation to Parliament.

Some of the targets for the 2019 fiscal year were:

• The overall Real GDP growth of 7.6 percent;

• The non-oil Real GDP growth of 6.2 percent;

• End-period inflation of 8.0 percent;

• Fiscal deficit of 4.2 percent of GDP;

• A primary surplus of 1.2 percent of GDP; and

• Gross International Reserves to cover not less than 3.5 months of imports of goods and services.