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26 July 2016

Gov’t demands Ghc1.8bn in supplementary budget

TerkperFinance Minister, Seth Terkper, is asking for Parliament’s approval of a supplementary budget of Ghc1.8 billion for various policies for the rest of 2016.

Mr. Terkper made the request during a midyear review of the 2016 budget to Parliament on Monday. He said the additional Ghc1.8 billion has been necessitated by huge shortfalls in revenue generation.

Smart Borrowing

Mr. Terkper added that government will continue to use smart borrowing measures to ensure sustainable growth within the medium term.

According to him, this is the first time Ghana has slowed the rate of debt accumulation since the declaration of HIPC adding that the feat is validated by globally accepted measures.

Mr. Terkper who has come under massive criticism from Ghanaians over his handling of the economy added that the cedi has been fairly stable and private sector confidence is bouncing back.

He told Parliament that the economy grew by 4.9% in the first quarter of 2016 and added that government will persevere in bringing down Ghana’s debt level which stands at GHC99.9 billion according to the Central Bank figures.

Mr. Terkper further told Parliament that results and indications reveal that government’s policies are on track and working. He said government is living within its means; borrowing less from banks and the capital market.

He also revealed that the public debt has decreased from 72% at the end of 2015 to 63% at the end of May 2016.

He added that the price of crude oil is at an all-time low ($28 per barrel in January) compared to $53.06 per barrel used for the budget affected it. The current $45 to $48, according to the minister, is still below oil price projection used in the 2016 budget.

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