Government has revised its revenue targets for 2016 in line with falling commodity prices, especially the prices of crude and gold.
The damage to the FPSO Kwame Nkrumah’s turret bearing that lasted between March and April 2016 has also led to a reduction in the revenue targets for oil production from the Jubilee fields in 2016.
In a statement released by the Finance Minister, Seth Terkper, total national income for 2016 is expected to be 56.7 billion Ghana Cedis, and 30.1 billion Cedis in 2018.
Fiscal deficit targets have also been reduced from 5.3% of GDP to 5% of GDP. This, according to the Finance Minister, is in line with government’s aim to spend prudently even in the face of the election year.
The fiscal deficit may improve to 3.6 percent of GDP in 2017 and 3 percent in 2018 and 2.3 percent in 2019, the finance ministry said.