The Minister of Information, Kojo Oppong Nkrumah, has said the GH¢21 billion reduction in the government’s appropriation for the 2023 fiscal year is commendable.
Contributing to the statement on the mid-year budget presented by the Minister of Finance, Ken Ofori-Atta, to Parliament last Monday, Mr. Oppong Nkrumah said though calls remained for further budget cuts, the mid-year cut of GH¢21 billion was commendable.
“I think one of the first things to note is that the appropriation has been reduced by GH¢21 billion and I think for those who pay attention to fiscal policy or to the fiscal framework, that is a good thing except that GH¢10 billion of that is somewhere around interest payments and the rest is spread across the various expenditure lines,” he added.
The information minister said, nonetheless, that it was a reduction in the appropriation of government expenditure and that it was something that should give people some comfort that the country was doing well to stay within the deficit constraints “that we have imposed upon ourselves”.
Lessons
“But there are a lot of lessons that we need to learn moving forward, and one of them, for example, deals with bolstering the relative stability that the minister speaks about,” he said.
The 2023 budget saw a substantial GH¢21 billion reduction in government expenditure.
Mr. Oppong Nkrumah highlighted the importance of the cut as a mark of fiscal discipline in achieving economic stability and adhering to deficit constraints set by the government.
While acknowledging that a portion of the reduction was allocated to interest payments, the information minister emphasised that the overall decrease in expenditure signalled the government’s determination to streamline its financial resources and prioritise development initiatives.
He underscored the need to learn from the current economic landscape and make informed decisions to support the country’s economic growth.
The Information Minister emphasised that the government remained steadfast in bolstering financial stability, which was a key theme highlighted by Mr. Ofori-Atta during the budget presentation.
The Mid-year Budget Review provided an opportunity to assess the country’s economic performance and evaluate fiscal policies to ensure they are aligned with national development priorities. The reduction in government expenditure reflects the impact of the successful Domestic Debt Exchange Programme (DDEP), which has created fiscal space for growth-enhancing reforms and managed rising debt costs.
The budget review also highlighted the government’s growth agenda, which prioritises inclusive development and private sector investments to stimulate job creation and sustainable economic growth.
Key growth-oriented programmes, such as Planting for Food and Jobs Phase II, aim to strengthen agriculture and value addition, provide opportunities for the youth, and foster economic diversification.
Source: Graphic Ghana
