2021 Budget To Possibly Contain Austerity Measures- Seth Terkper
Former Minister for Finance, Seth Terkper, ahead of the presentation of the 2021 Budget Statement in Parliament today, has told Ghanaians to expect a tough budget which might possibly contain some austere measures for the fiscal year.
Mr Terkper is of the view that with a budget fiscal deficit of close to 15 per cent and a debt-to-GDP ratio of 80 per cent for end-2020.
Although government says its fiscal deficit is 11.4 per cent and total debt stands at 74.4 per cent – there is little fiscal space for government to operate.
This coupled with high debt servicing costs, low revenue mobilization, compensation payments, arrears and the Bank of Ghana’s unwillingness to support the budget, provides government with very little options and as such should look at implementing some austerity measures.