The International Monetary Fund is projecting a marginal reduction in Ghana’s fiscal deficit to Gross Domestic Product (GDP) of 7.3% in 2023, from the 9.9% recorded in 2022.
This is coming despite a significant cut in government expenditure and expected improvement in revenue.
According to its April 2023 Fiscal Monitor Report, the fiscal deficit will however increase to 8.4% of GDP in 2024.
This indicates that the country’s fiscal economy will still experience financing challenges.
The fiscal deficit to GDP will then lower to 7.3% in 2025. It will subsequently go down to 5.9%, 5.3% and 5.4% of GDP in 2026, 2027 and 2028 respectively.
Based on the figures, the country’s fiscal deficit to GDP would remain the highest in Sub-Sahara Africa. Zambia follows closely with a fiscal deficit of 9.1% of GDP in 2022.
Primary balance estimated at 0.1%
The primary balance will however end this year with a surplus of 0.1% to GDP, from a deficit of 2.8% in 2022.
This is a result of an anticipated strong revenue growth in 2023.
It will then inched up to 0.6% in 2024 and subsequently expand to 1.0% of GDP consistently from 2025 to 2028.
Meanwhile, the Director of Fiscal Affairs at the IMF, Vitor Gaspar, has advised the government of Ghana to ensure that fiscal policy is consistent with monetary policy to restore price and financial stability, while supporting the most vulnerable.
“Abrupt changes in financial conditions also call for fiscal restraint to tackle fiscal vulnerabilities. To that end, governments will need to give greater priority to rebuilding fiscal buffers by developing credible risk-based fiscal frameworks that promote”, Mr. Gasper said.
Latest Stories
-
Boeing strike ends as workers accept new contract
36 mins -
GAF will not relent in its quest to counter external threats – GOC Southern Command
40 mins -
Election 2024: Bawumia reiterates commitment to promote sustainable mining practices
41 mins -
Ensign Global College promotes health and community well-being at Ngmayem Festival 2024
43 mins -
Bobrisky reveals reason for leaving Nigeria
1 hour -
Tiwa Savage discloses ‘craziest thing I’ve ever done for love’
1 hour -
US states worried about election unrest take security precautions
2 hours -
Modi condemns violence after Canada temple incident
2 hours -
Barcelona hit by new flood as rescuers search Valencia basement car park
2 hours -
Labadi Beach Hotel pays over GH¢16m as dividend to SSNIT
2 hours -
Elon Musk can keep giving $1m to voters, judge rules
2 hours -
Election must not divide us, government will protect each citizen – Akufo Addo
3 hours -
Novel way to beat dengue: Deaf mosquitoes stop having sex
3 hours -
Trial begins over beheading of teacher who showed Prophet Muhammed cartoon
3 hours -
‘See you soon’ – Bobrisky jets out of Nigeria
3 hours