Presenting the 2016 Financial Year Budget Statement and Economic Policy of the Government of Ghana to Parliament, Finance Minister, Seth Terkper said the Mahama-led administration is not interested in complaining about its challenges but will confront them with prudent policies, and live within their means.
Steadily but surely election years in Ghana are becoming known for huge financial irresponsibility.
In the past fiscal deficit have shot up rather alarmingly - during an election year - throwing the country's economy out of gear.
It was only in 2004 which despite being an election year, that some fiscal discipline was maintained. But this has been attributed to the HIPC initiative.
Some economists have also attributed the country’s increasing fiscal deficit to overspending by successive governments during election year.
Earlier this year, the Managing Director of the International Monetary Fund (IMF), Christine Lagarde, admitted that the real test for Ghana’s commitment to the balance of payment supports would be 2016, which is the election year. According to her, just like other countries across the world, election years are always difficult for countries under any programme because they struggle to meet their targets.
Thus prior to the budget presentation, the focus of many financial analysts was on government’s planned spending; wondering if government expenditure will overshoot revenue, especially since 2016 is an election year.
But presenting the 2016 Budget Statement on Friday, Seth Terkper expressed optimism that government will this time around meet its targets since it will conduct elections based on the budget available.
“Despite it being an election year let me also reiterate President Mahama’s assurance of sustaining fiscal discipline while investing prudently in infrastructure and social development. We will resist the temptation of election year overspending”, he said.
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