Mid-year budget presentation: Economic measures showing positive results - Finance Minister
The Minister of Finance, Dr. Mohammed Amin Adam says the government has successfully reversed negative economic trends, demonstrating a robust recovery.
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Speaking during the mid-year budget presentation in Parliament on July 23, he emphasized that the economy is rebounding faster and stronger than anticipated.
"It is clear that we are on the right path. The economy is performing better than expected," Dr. Adam said. "The choices we have made and the policies we are implementing are yielding results. All indicators are showing improvement. We will continue to make the right decisions and maintain this positive trajectory."
Dr. Adam highlighted the government's efforts over the past six months to expedite the implementation of key programs and support growth-enhancing initiatives.
He announced the successful conclusion of the second review of Ghana's Extended Credit Facility with the International Monetary Fund (IMF), leading to the disbursement of the third tranche of $360 million, bringing the total to approximately $1.6 billion.
The Finance Minister also detailed the completion of the Debt Restructuring programme with the Official Creditor Committee (OCC), covering $5.1 billion, which resulted in about $2.8 billion of debt relief. This means Ghana will not service its debt to official creditors from 2023 to 2026. Additionally, negotiations with Eurobond holders have been concluded, covering $13.1 billion, leading to a cancellation of $4.7 billion of debt and providing debt service relief of $4.4 billion between 2023 and 2026.
Dr. Adam further announced successful negotiations with five out of seven Independent Power Producers, resulting in savings of approximately $6.6 billion over the lifetime of the Purchasing Power Agreements (PPAs).
He reported that expenditures have been controlled to stay within the 2024 Budget Appropriation, and midyear revenue targets were exceeded by 0.2 percent by the end of June 2024.
"In essence, we are living within our means," Dr. Adam stated. "Aligned with our IMF program, we are on track to achieving a primary surplus of 0.5 percent of GDP by the end of the year. We have cleared all outstanding Bank Transfer Advices (BTAs) up to 2022 and are working diligently to address BTAs from 2023."