Finance Minister Seth Terkper has told Parliament Ghana’s economy will grow at a rate of 4.1 percent by December 2015, compared to an initial projection of 3.5 percent.
Ghana in 2014 achieved a 4.0 percent growth rate.
The estimation he said is largely due to government’s home-grown policies and the International Monetary Fund’s (IMF) programmes, which have brought good gains at consolidating the economy.
“There are clear signs that our consolidation efforts are yielding positive results making the economy more efficient. Accordingly, the Ghana Statistical Service estimates that GDP will grow at 4.1% at the end of 2015 compared to the 3.5% initially projected. The World Bank, the IMF and others estimate future growth above 7%”.
Mr. Seth Terkper made these known in Parliament on Friday November 13, when he delivered the 2016 budget statement.
It is the first budget in the second-year of a 3-year IMF programme that recommends austerity in public expenditure.
This is also the second time a budget has been read this year, after government in July came to Parliament to revise its 2015 budget, after huge shortfalls in estimated revenue forced government to lower its 2015 expectations and predictions.
Government thus received parliamentary approval for more than 800 million cedis to enable it execute projects outlined in the 2015 budget.
Announcing the new projected growth rate on Friday, Mr. Terkper said the withdrawal of subsidies is helping to consolidate gains made by government.
“As a result of good revenue performance including GRA’s compliance efforts, comntainement of overrun in the wage bill and other spending as well as withdrawal of energy-related subsidies, our fiscal consolidation programme is on course with the deficit set to be on target at 7.3%.”
According to him, government projects implemented through loans will now pay for themselves.
He also mentioned Government’s issuance of a 15-year bond, the first in sub-Saharan Africa, beside South Africa.
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By: Ebenezer Afanyi Dadzie/citifmonline.com/Ghana