Minister of Finance, Ken Ofori-Atta
The Minister of Finance, Ken Ofori-Atta will be presenting the Mid-Year Budget Review and Supplementary valuations in Parliament in July this year, the Majority Leader hinted.
The Finance Minister according to Section (28) of the Public Financial Management Act, 2016 (PFMA) Act 921, is expected to submit a Mid-Year Review to parliament six months after the presentation of the main budget for that fiscal year.
With the anticipated review, the Finance Minister is to present two supplementary estimates due to the impact of the COVID-19 pandemic on government’s budget.
This, according to sources is an important opportunity Mr. Ofori-Atta needs to take advantage of to review some of the key macroeconomic targets announced in the 2020 budget read last year.
Majority Leader, Osei Kyei Mensah-Bonsu, elucidated on the upcoming presentation in an interview.
“This meeting would also witness the Finance Minister submitting a mid-year review and of course, giving what is happening, I believe necessarily he will come with supplementary estimates. There are two supplementary estimates that he is required to submit. One relates to the budget performance and if he needs additional funding, he will be required to submit supplementary estimates after the mid-year review,” he said.
The advent of the novel Coronavirus pandemic, led to government’s announcement for the need of a new fiscal working to redress its expenditure to meet revenue target.
The 2020 budget, which has been disrupted due to the economic impact of the novel Coronavirus pandemic, was targeted at expanding infrastructure, particularly roads.
However, the Finance Minister announced earlier this year that government will need some 9.5 billion cedis to mitigate the impact of the COVID-19 pandemic, a situation that may move the 2020 budget deficit to over 7 percent.
He also stated that this will be 2.5 percent of Ghana’s revised GDP, and there will be a “fiscal gap of GHS11.4 billion,” the Minister added.
COVID-19: July’s budget will reposition Ghana’s economy – Ken Ofori Atta
Earlier, the Minister of Finance, Ken Ofori-Atta, said the new budget to be presented in Parliament in July, will reposition Ghana’s economy to meet the global effects of the novel Coronavirus pandemic.
According to him, since the 2020 budget has been disrupted due to the pandemic, there is the need for a new fiscal policy to re-examine government expenditure to meet revenue target.