Government revises budget deficit and GDP growth

The increase is 0.3 point higher
the budget deficit target of 4.2% of GDP previously approved in
November 2018.

The government has also looked down
The growth rate of real GDP rose from 7.6% to 7.1% thanks to a
relatively higher GDP base for 2018, as well as the projected decline in crude oil
and gas volumes.

Presentation of the mid-year magazine 2019 and
Parliament, Mr. Ofori-Atta stated that the revision was
new trends in macroeconomic aggregates, which pose budgetary problems
risks.

Among the developments that justified a
revision of the 2019 macroeconomic framework are the relatively low performance of the Ghana cedi
relative to the US dollar, total revenues and under-forecast donations, faster
Execution rate of expenses of 92.9% compared to a recipe
mobilization performance rate of 84.5% for the first half of 2019.

Others are the crystallization of the energy sector
related contingent liabilities, which were not programmed in the 2019 budget
and expenditures related to regional security concerns; and less than
projected volumes of crude oil and gas.

Mr. Ofori-Atta said that despite the revision, the
the figure is still below the 5% ceiling legally set for the deficit.

"Despite this, the budgetary outlook
for the rest of the year remains solid even in the middle of strong
domestic winds. The revised budget framework for 2019 has carefully examined
some measures taken during the second half of the year to preserve the revised deficit
4.5% of GDP, "he said.

We are therefore convinced that the
The implementation of these tax measures will allow the government to contain
budget deficit in the 5.0% threshold set by the Fiscal Responsibility Act
GDP.

Tax measures are specifically adapted
improving domestic revenue mobilization, reducing spending,
as well as to address some prolonged structural problems critical to energy
sector.

Financing of the budget deficit for the
second half of the year will be a balanced mix of external and national relations.
funding resources.

Expectations are that a World Bank
The development policy operation (DPO), estimated at 500 million US dollars,
be approved by Parliament for disbursement in the second half of the year.

The minister stated that domestic funding was
should moderate in the second half of the year, given the
the frontloading of financing needs during the first half of the year that were
financed by the source.

Product of mineral monetization
royalties should also moderate domestic borrowing in the second
semester.

GNA