Finance Minister Dr. Mohammed Amin Adam is set to present his first government revenue and expenditure estimate, although just for the second half of the year, in a difficult economic era.
The mid-year budget review will be a test of his dexterity as he addresses Parliament to outline the government’s plans for the remaining five months of the year, amid expected heckling from the minority National Democratic Congress.
This presentation marks the first without former Finance Minister Ken Ofori-Atta’s direct involvement. However, as the Senior Presidential Advisor and Special Envoy for International Finance and Private Sector Investments, Mr. Ofori-Atta is expected to have had some input into the budget. Notably, this may be the first budget presentation in seven years without Bible quotes, potentially replaced by Quranic references if Dr. Amin Adam follows his predecessor’s format.
Dr. Amin Adam has previously stated that the government does not intend to request parliamentary approval for additional spending, implying no new taxes or major projects will be announced. However, he must detail how he plans to mobilise more domestic revenue and control government expenditure as required by the International Monetary Fund (IMF).
Join our WhatsApp Channel for more news
READ ALSO:
- US President Joe Biden Withdraws From 2024 Electoral Race, Endorses Kamala Harris
- Fuel Prices Go Up, Potentially Affecting Food Costs Again
The budget is expected to reflect agreements reached with external creditors, savings from debt renegotiations, and new obligations from debt restructuring, such as creating an escrow account to service renegotiated external debts. Additionally, the government’s recent commitment to limit disbursements to US$250 million out of an estimated US$3.8 billion in loans secured before the IMF bailout may force a realignment of infrastructure projects and shelving of stalled projects initially hoped to restart.
Macroeconomic targets may also be revised to reflect the new situation post-debt deal. While the government aims to complete as many projects as possible to boost its election prospects, it must adhere to the IMF programme, which requires enhanced domestic revenue mobilization, tightened expenditure controls, and comprehensive debt restructuring.
