The Ministry of Finance and Economic Planning has begun an engagement with the various stakeholders as part of preparations for the formulation of the 2023 Budget and Economic Statement.
This engagement comes at a time when the government team, led by the Minister for Finance, Ken Ofori-Atta, is also in Washington engaging with the International Monetary Fund (IMF) ahead of the 2023 Budget.
The Deputy Minister for Finance and Member of Parliament (MP) for Ejisu, Dr. John Ampontuah Kumah, who is leading the engagement, has so far spent a day’s meeting with stakeholders on policies and programmes that they would want to see reflected in the 2023 Budget, and which should be taken out, amended, or revised for the development of Ghana.
Addressing stakeholders at a forum held in Accra, he explained that: “As a government, we believe in the culture of governance that promotes the principles of transparency and accountability, and, therefore, these engagements enrich the budgeting process and move us a step closer to achieving these principles.”
According to him, several engagements had and continued to take place in different fora and with diverse stakeholders at various stages of the budgeting process.
“Our commitment to this process is even more enforced in these times of macroeconomic turbulence. Our economy, just like many other developing and emerging economies, is still managing the pressures posed by the current global and domestic challenges such as revenues are underperforming, and some critical expenditures are rising amid the general rising cost of living among others.”
Dr. Kumah added that “these developments, together with other factors, including credit rating downgrades and the subsequent closure of the International Capital Market; tightening domestic financing conditions; high cost of borrowing following the increase in the Monetary Policy Rate to address the high inflation; the depreciation of the cedi; and the high debt service burden, are continuously making funding of the Budget very challenging.”
He said the harsh reality was that “these challenges were still with us: revenue projections for 2023 are still on the low, however, government is investing in the necessary infrastructure to boost domestic revenue generation.
“On the other hand, Government is yet to conclude negotiations with the IMF which is expected to unlock other financing sources particularly, from bilateral partners,” he stated.
Dr. Kumah noted that “Given that Ghana is not expected to return to borrowing from the International Capital Market, (a major financing source in recent times to augment domestic financing), anytime soon, the financing challenges currently being faced by Government is likely to persist into 2023.”
The engagement was attended by representatives from Send Ghana, Association of Ghanaian Industries (AGI), Makola Women Association, Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Legon, Ghana Charismatic and Pentecostal Churches Association and several other civil society organisations, trade groups, academia who made inputs into the 2023 budget.
Also present at the engagement was the Chief Director, Ministry of Finance, Dr. Patrick Nomo, Acting Director of Budget, Stella Appiagyei, Coordinating Director (Operations), Ms Stella Dede Williams, and several other senior officials of the Ministry.
Presentations centered on proposed revenue options to be considered by government, reforms on social protection programmes, how government can reduce waste in the public sector, security, education, digitalization and several others.
In conclusion, John Ampontuah Kumah called on stakeholders to support the 2023 budget and economic statement when it is presented and indicated that submissions that falls within the focus areas of government will be incorporated.
