The figure is a 0.2 percent increase against the government target of 4.7 percent of Gross Domestic Product (GDP).
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Ghana to miss fiscal deficit target of 4.7 percent, according to Databank Research report
A Databank Research report has projected that Ghana’s fiscal deficit will end 2020 at 4.9 percent.
Ken Ofori-Atta
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The 4.9 of GDP target excludes Bank of Ghana’s bailout funds.
“Against our expectations of public expenditure and revenue dynamics, we forecast the overall fiscal deficit at 4.9% ± 0.5% by end-2020 (Government Target: 4.7% of GDP),” the report said.
Adding that “We expect spending pressures to remain intense in 2020, largely driven by interest payments, infrastructure spending, social intervention policies and a one-off budget for the 2020 elections. This could pose an upside risk to the overall budget deficit in 2020, resulting in higher borrowing requirements for the year.”
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Databank Research, however, said the fiscal reforms such as the Fiscal Responsibility Act and PFM Act could provide crucial restraints.
2020 revenue target
Ghana’s 2020 budget projects a 26.7% year-on-year growth in Total Revenue & Grants to GHS67.1 billion.
This revenue outlook is based on expected 12-month inflows from the tax measures implemented in late-2019 supported by ongoing reforms in tax administration and continued enforcement of tax compliance, the Economic Outlook Report emphasised.
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