Ghana’s finance minister expected to deliver 2024 budget statement
Ghana’s finance minister, Ken Ofori-Atta, will present the West African country’s 2024 budget statement on Wednesday, November 15.
Following the COVID-19 pandemic, Ghana’s economy has faced a challenging environment with slowing economic growth, public debt rising to 85% of GDP, and heightened inflation. These factors have placed pressure on the federal government to implement fiscal austerity. Additionally, regional coups and the threat of militant groups present Ghana with several security and economic challenges that the budget will have to address.
Ghana will hold general elections in 2024 and citizens are likely to vote primarily on the economy. The government will seek to restore investor confidence and meet IMF conditions for debt restructuring by presenting a budget that reduces government spending in certain categories, broadens the tax base to generate more revenue, and reduces high tariffs. Defense spending is likely to remain stable as ECOWAS, an organization of which Ghana is a member nation, seeks to mediate and contain the fallout of the military coup in Niger. Despite the unfavorability of these measures and the likely negative effects they will have on Ghanaians ahead of next year’s general elections, the government must apply these policies in the 2024 budget if it wants to continue receiving aid from the IMF and other external lenders.
