You are here

Response to Fitch Rating Publication on the 2014 Budget

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.

All rights reserved | Copyright © 2005 - 2017 Ministry of Finance - Ghana
28th February Road, P. O. Box M40, Accra - Ghana. Tel: +233 302 665 132