Finance Minister Ken Ofori-Atta is expected to present the government budget statement for the first quarter of the 2021 fiscal year to Parliament today, Wednesday, October 28.
He is expected to announce key decisions including measures to resuscitate the economy following the coronavirus pandemic.
In the event the governing party wins this year’s election, the government is expected to implement all the content of the budget statement as well as present the rest of the budget to cover the entire year.
Meanwhile, the International Monetary Fund is forecasting a worrying 76.7% of debt-to-Gross Domestic Product ratio for the country this year, according to its Sub Saharan Africa Regional Economic Outlook report released today.
This put the nation in the high risk of debt distress country category. The debt-to-GDP ratio will however drop slightly to 74.7 percent of GDP in 2021.
The Bretton Wood institution said the rising debt posses a threat to both the fiscal and monetary economy, particularly revenue mobilization, exchange rate and inflation.
The nation’s debt-to-GDP ratio has been growing sharply, from 44% in 2016 to 58.3% in 2017and subsequently to 59.1% in 2018.
In 2019, the natio’s debt stood at 62.8% of GDP, about GHS217.9 billion.
The report said 11 sub-Saharan African countries are currently at high risk of debt distress, and six are in debt distress.
Finance Minister, Ken Ofori-Atta has already appealed to the World Bank, IMF and the G20 to extend the debt repayments of emerging and developing countries.
“We must address worsening debt vulnerabilities to avoid a debt crisis, beyond the Debt Suspension Initiative. When debt cancellations or restructurings are necessary, a framework and mechanisms should be put in place to achieve expeditious and fair sovereign debt resolution involving official and private creditors.
Story: Business Desk
