Economist and Political Risk Analyst Dr. Theo Acheampong commended the government for not requesting additional funds in the supplementary mid-year budget. He attributed this to expenditure deferments and interest savings.
During the Finance Minister’s address to Parliament, key achievements were highlighted, and the government’s plans for the remainder of the year were outlined. Despite acknowledging global economic challenges, Dr. Amin Adam expressed confidence in Ghana’s economic trajectory.
Dr. Acheampong, speaking on the JoyNews AM Show, pointed out the significant cut in expenditures compared to revenue, as indicated in the mid-year budget documents. He expressed concern about the government’s plans to borrow funds domestically to finance the deficit, stating that businesses would have to compete with the government for capital, which could pose challenges.
He emphasized the impact of high borrowing costs on businesses and the potential difficulty in accessing capital. With 72% of the funds for the deficit expected to come from the domestic market, Dr. Acheampong raised concerns about the implications for businesses.