The Finance Minister has expressed confidence in the performance of the economy so far under the President Nana Akufo – Addo led administration by asserting that “the economy is now stableâ€.
Presenting the mid-year budget review to parliament on Monday, Ken Ofori Atta, reiterated government's position that it inherited an ailing economy but have succeeded in achieving economic stability and will reverse the negative trend.
Highlighting progress made with some key economic indicators, he said the last six months have witnessed a decline in inflation rates from 16.8% as at June last year to 12.1 by June 2017, a drop in Bank of Ghana rates which has been reviewed down to 21%, a GDP growth of 6.6% as compared to 4.4% during the same period in 2016, downward tax review and removal for various industries in the private sector, the National Entrepreneurship Innovation Programme and the implementation of the Free SHS policy, etc.
He revealed the nation’s energy problem as well as rising debt stock which stood at estimated $138 billion in real value as at June 2017 representing over 73% of GDP, has placed constraints on the government’s capacity to borrow or spend on development projects.
On the outlook for the next half of the year, the Minister pointed out that the government will begin with the payment of arrears in the energy sector, adding that there was a need to remove the restraints on industrial development in the country (paramount among which is power) as a way of facilitating job creation for the teeming unemployed population.
Speaking on developments in the agricultural sector, he mentioned the ongoing subsidized fertilizer distribution across the ten regions of Ghana which will have farmers pay 25% of price before collection, the Planting for Food & Jobs programme which has over 18,000 Ghanaian farmers already registered, the Agricultural improvement project that has at the moment employed 822 professionals to provide modern technical and market support to farmers across Ghana’s 216 districts.
He disclosed that COCOBOD has trained a total 10,000 cocoa farm pollinators to facilitate the proposed pollination of 20,000 hectares of Cocoa farms before the end of 2017 to boost production, which has been on the decline over the last few years.
Mr Ofori-Atta hinted at the planned completion of the Tema – Akosombo Railway project by mid-2020, the Bui Power joint venture initiative which is aimed at developing at least 250MW of solar power, among others.
He concluded by noting that, "fiscal stability is not an end in itself but a platform" for especially - the private sector to create economic opportunities for Ghana's growth.