Ken Ofori Atta said the government will restore fiscal discipline in the economy.
He said the government will restore fiscal discipline in the Ghanaian economy.
READ MORE: Ken Ofori Atta presents maiden Budget
Reading his maiden 2017 Budget Statement in Parliament on Thursday 2 March, he said "The country's debt stock has reached a level of approximately 73 per cent of GDP as at the end of 2016, which is in excess of the debt sustainability threshold of 70 per cent.
"This has resulted in high debt service costs with interest payments alone taking up nearly 42 per cent of tax revenue. This, together with compensation of employees, is more than the total domestic revenue, leaving no fiscal space for growth-enhancing policy programmes and expenditures.
He said the government was highly optimistic about its plans and programmes for the economy.
"The large fiscal slippages resulted in the fiscal deficit of 8.7 per cent of GDP on a cash basis and a 10.3 per cent on commitment basis. This is a sharp deflation from the IMF programme fiscal target of 5.3 per cent of GDP. We intend to reverse this trend and restore fiscal discipline," he said.