KPMG, one of the leading auditing firms in the country, in its post budget analysis, has called government’s growth target of 6.3 percent for the year 2017 ambitious, but achievable if measures to correct imbalances are effectively rolled out.
“The 2017 budget has a very positive outlook and bold initiatives that if they are implemented, should really help to implement some of the economic imbalances and put the country on a good footing for proper economic growth and development.
The projected GDP growth rate is ambitious 6.3 percent, given that the previous years have been lower. Nonetheless, if the government is able to implement the major policies in the budget, then then it can be achieved,” Anthony K. Sarpong, Partner and Head, Audit and Risk Management, KPMG.
He said this at a breakfast meeting organised by the Chamber of Commerce and Industry, France-Ghana (CCIFG) is organising a Business Breakfast, in partnership with KPMG, to give an update on the 2017 budget and its implication on businesses.
He advised that maintaining fiscal discipline will be key to ensuring that the economy is back on a path of growth.
“What is really is the fiscal discipline? Will government stay within its means? That has been the major problem of this country. We spend more than we have, and if we are able to live within our means for certain periods, then we can stabilise the economy.
The second one is infrastructure. And when I talk about infrastructure, I am talking about power, stability and ability to afford. If you have that, then businesses should be able to have the power to run their businesses,” Mr. Sarpong said.
The country’s fiscal deficit rose to 8.7 percent last year against a target of 5.3 under the erstwhile government. But the NPP government has set a new target of 6.5 percent of GDP for 2017.
The Finance Minister, Ken Ofori-Atta, presenting the 2017 budget in March, assured that government will adhere to principles that will restore fiscal discipline.
“We will adhere to and maintain good economic governance principles of fiscal discipline, accountability and transparency. To reiterate what the President said, we will protect the public purse by guaranteeing value for money in all public transactions, and exercising prudence and discipline in our fiscal management to deliver on the aspirations of the Ghanaian people,” he said.
Mr. Ofori-Atta has further stated that government will introduce a “Fiscal Responsibility Act,” to ensure judicious use of the public funds, as it seeks to hold the cedi’s slide in check and bolster the macroeconomy.
Source: Obed Atta-Yeboah l thebftonline.com l Ghana