• About Us
  • Contact Us
Account
GTB
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
Account
Ghana Talks Business
No Result
View All Result

EIU explains why gov’t of Ghana will overspend its budget in 2020

12/07/2019
Reading Time: 2 mins read
Ken_Ofori_Atta, budget 2020

Finance Minister of Ghana, Ken Ofori Atta

405
SHARES
Share on FacebookShare on TwitterShare on WhatsApp

The Economist Intelligence Unit (EIU) is predicting that the government will struggle to lower its expenditure in the run-up to the 2020 general elections.

Despite government passing the Fiscal Responsibility Act last year aiming to limit future budget deficits to a maximum of 5% of GDP, the London-based business advisory firm expects the government to record a 5.5 percent budget deficit come next year.

In its July 2019 Country Report, the EIU stated that following the completion of the IMF programme in April 2019, and a period of fiscal consolidation, it expects to see some spending laxity.

“Moreover, the authorities will remain reluctant to lower public spending ahead of elections. The public ­sector wage bill—together with high-interest payments and capital expenditure to help to deliver ambitious industrialisation and infrastructure development promises—will drive expenditure increases.

Overall, we expect the fiscal deficit to widen from 3.4 percent of GDP in 2018 to 5.5 percent of GDP by 2020 as a result of rising expenditure,” the EIU said.

Given that the government has struggled to meet its domestic revenue targets, EIU’s forecast implies that the government will have to fall on the capital markets and other funding sources to make up for the excess spending.

But the UK-based firm forecasts a quick return to consolidation, leading to a lower deficit in 2023, of 3.3 percent of GDP.

“As a result of this tightening, the public debt stock will edge down from an estimated 53.5 percent of GDP at the end of 2018 to 45.8% of GDP by end-2023, owing to fiscal consolidation combined with robust economic growth.

Previous Post

20 Customs officials transferred after Finance minister’s visit

Next Post

This is how much EOCO has recovered from criminal activities so far

Related Posts

Levy on MoMo transactions, ghanatalksbusiness.com

2022 Budget: Why the levy on MoMo transactions

18/11/2021
2022 Budget, ghanatalksbusiness.com

Budget 2022 reading takes place today, what to watch out for

17/11/2021
the 2020 budget, ghanatalksbusiness.com

Moody’s review Ghana’s economic outlook to negative, affirms B3 rating

20/04/2020
BoG maBOG, Policy rate, Lending rate,, ghanatalksbusiness.com

GDP growth may collapse to 2.5% in 2020- BoG fears

19/03/2020
Economic indicators, GDP, ghanatalksbusiness.com

“We eat GDP”- Chartered Economist rebuts “we don’t eat GDP” sentiments

07/02/2020
Ken_Ofori_Atta, budget 2020

Government to help Banks lend at discounted rates, according to Budget 2020

13/11/2019
Next Post
EOCO

This is how much EOCO has recovered from criminal activities so far

CEO_of_menzgold

NAM1 charged with 4 counts of fraud and doing banking business without licence

  • About Us
  • Disclaimer
  • Privacy Policy
  • Advertising
  • Contact Us

© 2023 Ghana Talks Business

No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
  • Login

© 2023 Ghana Talks Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In