Correct the fiscal deficit before we approve 2021 Budget – Minority to Gov’t

The Minority in Parliament has asked government to effect the needed amendments in the fiscal deficit before approval of the 2021 budget.

In a statement issued in this regard, the minority in a number of demands noted that “for the 2019 fiscal year Government reported a fiscal deficit of 4.8% of GDP. Whilst at the same time as confirmed by the IMF in their April 2020 staff report a fiscal deficit of 7.5% of GDP.”

“This means an amount of about GHS8.2billion was concealed from our expenditure framework.”

The statement went on “we demand that the fiscal deficit including arrears for the year 2020 be corrected in the budget statement to reflect the actual figure of 17.5% of GDP. Fiscal deficit for the year 2020 of 13.8% of GDP as stated by the Ministry of Finance excludes an amount of GHS6.2 billion being what Government refers to as Energy sector payments.”

It added, “we demand the inclusion of the Energy sector payments of GHS6.2 billion in the fiscal tables to reflect in the corresponding fiscal deficit.”

The minority leader Haruna Iddrisu intimated that mismanagement and uncontrolled expenditure and sheer lack of prudence accounted for the poor performance of the economy and not just COVID-19.

Source: Modern Ghana

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