Ghana to raise public spending – Deputy Finance Minister

marketThe government of Ghana is likely to raise public spending, the Deputy Minister of Finance Seth Terkper has told the Bloomberg news service.

According to the report the decision follows pledges made by the World Bank and the International Monetary Fund (IMF) to support government budget for the fiscal year 2009.

“If you are getting resources, then you can loosen up a bit,” Terkper told Bloomberg. He, however, declined to give details, the publication said.

He said the government may call a special session of parliament to make an economic presentation that might include a supplementary budget, the deputy Minister was quoted as saying by Bloomberg. Ghana’s parliament is currently on recess until October.

The country’s fiscal deficit fell to 3.4 percent of gross domestic product in the first half of the year, from 5.7 percent a year earlier, Finance Minister Dr. Kwabena Duffuor said on August 4, 2009.

Presenting the 2009 budget in March, Dr. Duffuor said that the country is aiming to cut its budget deficit to 9.4 percent of GDP this year, from 14.9 percent last year. Growth is likely to slow to about 5.9 percent from 7.3 percent in 2008, he said.

President Mills also said during the State of the Nation address to parliament that the government will spend wisely.

The ministry has started planning for its 2010 budget, to be presented in November or December, Terkper told the publication.

By Emmanuel K. Dogbevi

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  1. Atuahene-Otchere says

    They accused Kuffour of spending unwisely by building roads, presidential palace and other projects. Now, they are telling us they are going to spend more – because they have secured that killer IMF loan – a loan which will prevent domestic growth, freezing of employment, raising of utility bills. Who say Ghana broke? If Ghana is broke how come they spent GH¢3.6 billion on transition team, $1m on Obama’s visit. We are watching they should remember that they would one day account for Muntaka’s GH¢10,000 Mallam’s money, the pamper and Kyinkyinka’s money.

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