Accra November 28, 2013, Our attention has been drawn to Fitch Rating’s publication of 25th November 2013 on the 2014 Budget titled “Ghana budget fiscal aims limited, overshoots still likely”.
We disagree with Fitch Rating’s position that the consolidation measures announced in the budget will not effectively address the Ghana fiscal challenges experienced in the past two years.
Fiscal policy as outlined in the 2014 Budget continues to aim at fiscal consolidation through improved revenue mobilisation, rationalization of public expenditures, and review of financing methods. The details of the measures are contained in the 2014 Budget.
We are of the view that the measures announced in the Budget are credible to ensure that Ghana’s fiscal deficit is reduced to a sustainable level over the medium term. Ghana does not wish to adopt abrupt measures that will affect the medium term growth prospects of the economy. The Budget also outlines various debt management strategies aimed at ensuring debt sustainability.
Although a fiscal deficit higher than what was estimated for 2013 is projected for the year, it is worth noting that significant progress has been made in addressing the issues that led to the fiscal slippage in 2012 as outlined Paragraph 9 of the 2014 Budget.