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Business News of Thursday, 30 July 2020


Ghana CARES programme to offer fiscal consolidation path on economy - Kwarteng

Kwaku Kwarteng, Deputy Finance Minister Kwaku Kwarteng, Deputy Finance Minister

A Deputy Finance Minister has said the Ghana CARES Programme which is intended to alleviate and revitalize enterprises in the wake of the coronavirus pandemic, offers a road map towards a path of fiscal consolidation.

According to Kwaku Kwarteng, the COVID-19 Alleviation and Revitalization of Enterprises Support Program as announced by the Finance Minister, Ken Ofori-Atta in his mid-year budget review last week is expected to augment a revive on the economy driven by the Fiscal Responsibility Act.

Speaking at a Webinar session organised by Deloitte Ghana on Thursday July 30, the Deputy Finance Minister said; “Within the shortest possible time, the Ghana CARES programme is expected to bring us back to two things which are namely; to drive us to back to the path of fiscal consolidation and also to deploy an arrangement within which business and enterprises that have suffered as a result of the pandemic would be supported to return back to their growth ways.”

He added that government remains unwavering in its aim to protect lives and sustain livelihoods as well as rebuild Ghana’s major sectors in order to position the nation towards the path of growth.

In his mid-year budget review and update presented to Parliament last week, Finance Minister, Ken Ofori-Atta announced the Coronavirus Alleviation and Revitalisation of Enterprises Support (CARES) programme, which will require an investment of GH¢100bn from 2020 to 2023. GH¢70bn of this will come from the private sector.

The Finance Minister explained that the Ghana CARES programme will be in two phases: a stabilisation phase that runs from July to the end of the year (2020), and a medium-term revitalisation phase that is aimed at accelerating the much-touted ‘Ghana Beyond Aid’ economic transformation agenda.

The ambitious programme recognises the fact that the success of a medium-term initiative like this would very much hinge on limiting the damage caused by the virus.

Additionally, from now to the end of the year, which is the first phase of the project, government says it will be extending the duration of some of the emergency programmes implemented to provide relief to individuals and businesses alike.

Deloitte Ghana's webinar was dubbed; Mid-Year Budget Review in COVID-19 Era and under the theme; "Getting the Economy back on track (Response, Recovery and Prospects)"