Deputy Finance Minister, Abena Osei-Asare, has defended the GH¢20 billion reduction in expenditure, asserting that it is sufficient for the country given its current circumstances.
During the mid-year budget review presented in Parliament, Finance Minister Ken Ofori-Atta proposed a downward revision of the Appropriation from GH¢227.7 billion, as previously presented and approved in November 2022, to GH¢206 billion. This revision is in accordance with Regulations 24 sub-regulation (3) of the Public Financial Management Act Regulations 2019 (L.I. 2378).
Minister Ofori-Atta explained that although tax revenue showed improvement in the first six months of the year and was on track to meet its targets, oil revenues fell short of expectations due to changes in global prices. In response to this revenue shortfall, the government decided to reduce expenditures to align with the underperformance of certain revenue streams, thus leading to the cut in the 2023 Appropriation.
When asked in an interview with Bernard Avle on Point of View on Citi TV whether the GH¢20 billion cut was sufficient for the country, Mrs. Osei-Asare defended the decision. She pointed out that the total spending on goods and services for the year amounted to less than GH¢10 billion, and even the entire budget for goods and services of Metropolitan, Municipal, and District Assemblies (MMDAs) was less than GH¢20 billion for the entire financial year. Therefore, she emphasized that the GH¢20 billion reduction was more than adequate, considering the prevailing economic situation.
Moreover, the Deputy Finance Minister stressed that the government had to strike a balance and avoid excessively contracting the economy. She cautioned against taking measures that could hinder economic activities and progress. By maintaining a reasonable level of government expenditure, they aim to ensure that essential services and developmental initiatives continue without disruptions.