Abena Osei-Asare says the GH¢20 billion cut in expenditure is enough for the country’s current state

Deputy Finance Minister Abena Osei-Asare has defended the GH¢20 billion reduction in expenditure, asserting that it is adequate for the country’s current economic situation.

The Finance Minister, Ken Ofori-Atta, announced the proposed downward revision during the mid-year budget review in Parliament. The revision is set to decrease the Appropriation from GH¢227.7 billion to GH¢206 billion, in accordance with the Public Financial Management Act Regulations.

Ofori-Atta explained that while tax revenue had shown improvement in the first half of the year and was on track to meet targets, oil revenues fell short due to global price fluctuations.

Consequently, the government decided to adjust expenditures to match the underperformance of revenue sources, leading to a reduction in the Annual Budget Funding Amount (ABFA) and the 2023 Appropriation.

When questioned about whether the GH¢20 billion cut was sufficient for the country, Deputy Finance Minister Osei-Asare, in an interview with Bernard Avle on Point of View on Citi TV, emphasized that the allocated funds were more than enough. She pointed out that the total goods and services expenditure for the entire financial year for all Metropolitan, Municipal, and District Assemblies (MMDAs) was less than GH¢20 billion.

Additionally, Osei-Asare cautioned against further contracting the economy, as it could have adverse effects on various aspects of the nation. Contraction could hinder economic growth and development, making it crucial to strike a balance between fiscal responsibility and ensuring the continuity of essential activities and projects.

Source – citinewsroom.com