Despite government’s efforts at achieving a budget deficit of 5.0 percent as at September, there are worries that the figure may go over the target by close of the year.
Government targeted 5.3 percent under its program with the International Monetary Fund .
Some observers are of the view that the figure may shoot up by 1.25 percent for the last quarter of 2016 due to election spending.
Speaking to Citi Business News, Economist, Professor Godfred Bokpin was of the view that with the level of activities, government may be spending outside the budget, hence may miss the target.
According to him, the indications point to a likelihood of government missing its target of further reducing the budget deficit.
“There’s a real risk that we might do a little above the target and that could come because of the election. We don’t know if the last election related activities that are ongoing have been budgeted. Overnight road constructions or whatever that probably were not budgeted for and other related issues” he said.
Expressing optimism in the in lowering expenditure, Professor Bokpin maintained that due to the IMF programme government may not reach the level of expenditure witnessed in 2012.
“I think that in the midst of that the good news is that we are not likely to see the kind of typical expenditure that we saw in 2012. That year was characterized over expenditure. I strongly think that we will be at a good level due to the IMF programme anchored on the zero financing of the budget deficit by Bank of Ghana ,” he stressed.
“I think that because of the extra monitoring that the programme brings on board we are not likely to experience the expenses that we saw in 2012. For that reason they should help all of us put our hose together quickly after the election and my prayer is that we will be able to go into the election successfully,” he added.
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(Via: CitiFM Online Ghana)
