Ghanaian Finance Minister to Brief Parliament on Spending
Ghanian Finance Minister Ken Ofori-Atta will appear before parliament in Accra today to brief members on total state expenditure since the 2020 outbreak of COVID-19.
COVID-19 caused Ghana’s national expenditures to skyrocket, and the economy has yet to recover. In the first year of the pandemic, public debt increased to 81%. To mitigate the surplus spending induced by COVID-19, Ghana’s 2022 budget presented an ambitious plan to raise public revenue from 16% to 20% in 2022. However, the legislation is unlikely to be implemented in the near future, as it has so far received significant opposition from minority parties.
Ghana’s fragile economic situation may be further exacerbated by the war in Ukraine. Global prices of popular commodities including food, fuel, and fertilizer are rising and—coupled with worldwide inflation pressures—these increases may hinder consumer spending and economic growth in Ghana. As a result, expect measures to be taken by the Central Bank to mitigate the highest inflation levels the country has seen since 2009. Their next monetary action is set to be decided at the Ghanian Central Bank meeting on July 25th, 2022, barring any further delays or major opposition.
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