Finance Minister, Seth Terkpey, has indicated that, Government has put in place strategic Policies, that will ensure strict fiscal discipline during election years.
Some gross concerns have been raised about Government’s taste of over-spending in every election year, and 2016, is no exception.
According to The Country’s Fiscal Data provided by The Finance Ministry, Government’s spending for the first seven months of the year, topped GH 23.28 Billion, which was within the budget for the period.
Despite the fact that, Government’s spending on Capital Projects, exceeded the target by 16.7 percent, brought about the steady roll-out of infrastructural Projects, The NDC Government seeks re-election, in the December General Elections.
However, Revenue performance and Increased Capital Expenditure, have pushed up the Country’s Fiscal Deficit to more than 4.69 Billion Cedis, as at the end of July this year, creating uneasiness among businesses, as the Country heads to the Polls in December.
The Figure represents a disturbing sign of deteriorating economy, after the Country recently witnessed a fallen deficit, in line with the IMF’s expectations, under the Three-Year-Extended Credit Facility.
Speaking, at Tuesday’s Graphic Business/Stanbic Bank Breakfast Meeting in Accra, on the theme: “Election Year Budget Deficit: Implications for Macro-Economic Stability”, Finance Minister, Seth Terkpey said, Government will ensure the full compliance of the Polices which it has instituted, by current and successive Governments, to ensure strict Fiscal discipline during election years.
“We have put in The New Public Financial Management (PFM) Law so that, in the event that Government does not complete negotiations or future ones, regarding the estimates that have been put in the Budget, Government will ensure full compliance.
We also have put a number of new measures in the New Public Financial Management (PFM) Law, which has two characteristics, The, Financial Administration Act and The Budget Responsibility Act and Regulations.
This will ensure the elements of regulations”. He was hopeful that, the Policies would see the light of day, in due time. He added that, Government has begun rolling out some of the measures to curb fiscal deficit in election years.
Source: radioxyzzonline.com/ Pious Kojo Backah.