Budget review: Resisting spending spree temptation will help stabilise the Cedi – Joe Jackson

A financial analyst Mr Joe Jackson has told the Finance Minister Dr Mohammed Amin Adam that resisting the temptation to overspend in this election year will contribute to stabilising the local currency.

To that end, he has asked the Minister to send a clear signal through the mid-year budget review for 2024 that the government will not engage in a spending spree in the election.

Speaking on News 360 on TV3 on Monday, July 22, Mr Jackson, also Chief Operations Officer of Dalex Finance said “The key thing we are watching out is a clear statement that there will not be the usual election-year spending spree. That truly is what will keep the Cedi stable, that is what will assure businesses and the public that we are not going to go into another spending spree and therefore you don’t have to move your money into a foreign currency to hold.”

The Finance Minister had already said that with five months left to the 2024 Presidential and Parliamentary elections, the government is determined not to overspend its budget.

He further assured that the government would stick to its programmed expenditure of GH¢226.7 billion.

Commenting on this, Mr Joe Jackson said “If there is that clear indication and if they stick to what they have said before that there will be no increase in taxation then we will be fine. Remember this is a mid-year budget review, it is not a new budget totally so there is some limits to what we can expect.”

The Finance Minister Dr. Mohammed Amin Adam, per Section 28 of the Public Financial Management Act, 2016 (Act 921), will be presenting to Parliament, the Mid-Year Fiscal Policy Review of the Budget Statement and Economic Policy of the Government of Ghana for the 2024 Financial Year today Tuesday, July 23.

A statement issued by the Finance Ministry said that the Mid-year review offers an update on the implementation of the 2024 Budget, with insights into the economic and fiscal performance for the first half of the year, including updates on growth measures, revenue, and expenditure performance, financing, debt sustainability, and related matters as well as the IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).

The document will also highlight budget implementation for the rest of the year and a possible review of proposed policies on growth with a focus on SME growth, status on implementation of key government programmes, revenue measures, and expenditure controls, and financing adjustments based on the half-year performance.

“This is the first time Dr. Amin Adam will be making a statement in Parliament since assuming office as Finance Minister in February 2024,” the statement stressed.