The New Patriotic Party (NPP) Member of Parliament for Wenchi, Prof. Gyan Baffuor has predicted that government is likely to miss out on its expenditure target for 2016 ahead of the 2016 elections.
Prof. Baffour fears the projections made by government on fiscal discipline towards the election year will only be committed on paper, but may not be feasible in the lead up to the election.
He insists government will by all means incur high deficits as a result of the pressure on the national purse during elections.
Prof. Gyan Baffuor told Fiifi Banson on Anopa Kasapa on Kasapa 102.3 FM that between January to June 2017 the likelihood of excess spending influenced by overruns in expenditure target will strain the economy and bring hardship to Ghanaians.
Minister of Finance Seth Terkper will today, Friday, November 13, deliver government’s financial policy and budget statement for 2016.
The statement is expected to highlight some of the measures adopted under the three-year extended credit facility (ECF) reached with the International Monetary Fund (IMF) earlier this year.
The Bretton Woods institution has earlier made inputs into the budget, after the completion of its second review of the programme that: “The budget will also face additional spending needs from the (one-off) costs related to next year’s elections and a nominal wage bill increase now projected to be slightly higher than envisaged under the program, while earmarking of revenues for statutory funds continues to reduce budgetary flexibility.”