USA Patriotic Ladies Club opinion about the current budget by the Finance Minster

Ghana's budget statement and economic policies for 2019 was read in parliament on Thursday, November 15, 2018 by the Finance Minister, Honorable Ken Ofori-Atta.

The budget statement which is themed "A stronger Economy for Jobs and Prosperity" outlines Ghana's economic outlook, decisions and policies by government to help promote Ghana's economy and ensure a sustainable development in Ghana.

The government in the last 22 months has accomplished a lot to be proud of. We have initiated and implemented policies that are undoubtedly beneficial to Ghanaians and improving Ghana's economy. Our sound economic policies have contributed to a substantial growth in Ghana's economy.

For instance, the economy grew to 8.5% in 2017 compared to the 3.7% recorded in 2016. Our Agricultural and industry sectors also saw a rise from 3.0% and -0.5% in 2016 to 8.4% and 16.7% in 2017 respectively. Also for the first time in 11 years, the government met its deficit target by successfully reducing its fiscal deposit from 9.3% of GDP in 2016 to 5.9% of GDP in 2017.

It recorded 2.8% of GDP in June 2018 within a target of 4.5% of GDP in December 2018. Ghana’s debt to GDP ratio which increased from 32% in 2008 to 73.1% percent in 2016 also declined for the first time since 2007 from 73.1% of GDP in 2016 to 67.3% in June 2018.

Furthermore, the Bank of Ghana Monetary Policy Rate reduced from 25.5% in 2016 to 20% in 2017 and currently stands at 17%, which is by far the longest 18- month reduction in the monetary policy rate since 2001. Interest rates on the 91-day treasury bills have also seen a decline from 16.8% to 13.4%. Inflation also declined from 15.4% in 2016 to 11.8% in 2017, and further to 9.8% in September 2018.

Ghana’s trade position has also been strengthened after a successful improvement in a deficit of US$1.4billion in June 2016, to a surplus of US$1.1 billion as at June 2017 (for the first time in 20 years) and further to another surplus of US$1.1 billion as at June 2018.

Our gross international reserves also increased from $6.2 billion in December 2016 (3.5 months of imports) to US$7.3 billion as at June 2018 (3.9 months of imports). Ghana’s Sovereign Credit rating was also upgraded for the first time in almost a decade, from B negative to B with a stable outlook, in September 2018 by Standard and Poor's (S&P).

The 2019 budget has been strategically planned to create more opportunities, make life easier, bridge inequalities, and meet the developmental needs of Ghanaians in a sustainable way.

This may sound ambiguous but with reference to what the NPP government has achieved so far, we are motivated and certain to deliver a future that meets the hopes and aspirations of Ghanaians through this budget.

Implementing this budget is possible. Ghana is blessed with resources that have the potential to generate revenue that will contribute to national development when adequately managed.

We need Ghanaians to trust in this government and render their support so that with a collective effort, we can build Ghana beyond aid.

We also commend Ghanaians for their patience and support to the government so far.

The government needs more of this support, trust, and patience to be able to realize this dream of sustainable development in Ghana.

Long Live Ghana

Long Live NPP Government

Patriotic Ladies Club, USA

Nana Yaa Owusua, PRO