-As Government Eyes Surplus in 2024
Ghana is making strides in its bid for fiscal stability, with the government reporting a dramatic reduction in the country’s primary balance deficit, a key indicator of fiscal health.
According to Finance Minister Dr. Mohammed Amin Adam, the deficit has shrunk from 4.3 perecnt of Gross Domestic Product (GDP) in 2022 to just 0.3 percent by the end of 2023, reflecting the government’s relentless push toward economic recovery.
What this means is that the government has significantly narrowed the difference between what it spends and what it earns, making it less reliant on borrowing to cover its expenses. This reduction is key to bringing the economy back on track, reducing debt, and creating more room to invest in critical sectors like infrastructure, healthcare, and education.
Speaking at a press briefing on the country’s progress under the IMF-supported Post-Covid-19 Programme for Economic Growth (PC-PEG), Dr. Adam said, “We have made significant progress on our fiscal consolidation efforts.” This achievement is deemed as a crucial moment in Ghana’s broader economic reform strategy, aimed at restoring macroeconomic stability and reducing the country’s reliance on external borrowing.
Dr. Adam revealed that provisional data for 2024 suggests that the country is set to post a primary surplus of 0.5%—a monumental shift in the country’s fiscal trajectory. “The government is on track to post a modest surplus for the first time in years,” Dr. Adam added, signalling a turn toward a more resilient and self-sustaining economy.
Being able to achieve this means the government’s revenues will exceed its non-interest expenditures, offering more room for public investments in infrastructure, healthcare, and other critical areas.
He, however, stressed the importance of maintaining fiscal discipline even as the country heads into an election year, a period typically associated with increased public spending.
