Kojo Oppong Nkrumah
Cabinet has concluded its 64th regular meeting and 7th retreat, with focus on the economic turnaround and preparation for the 2020 Budget.
The meeting was aimed at examining the economic turnaround program of the Government as well as approving a framework for the 2020 Budget.
It also focused on the level of government’s efforts in correcting the economic challenges it inherited by the Government in January 2017.
The meeting also focused on lying down some “redlines” in preparation for the 2020 Budget.
The meeting and retreat took place at the Peduase Lodge in the Eastern Region from Thursday, October 31, 2019 to Sunday, November 3, 2019.
Information Minister, Kojo Oppong Nkrumah, briefed the media on Sunday, November 3, 2019, at the end of the retreat and meeting.
The meeting was chaired by President Nana Akufo-Addo, says the Information Minister.
On the results of works done so far, Cabinet was pleased to note that the foundation of the economy has restored to a strong status, according to the Minister.
He added that “Cabinet was pleased to note Inflation which measures the rate at which prices of Goods and services increase, was at 15.3% when President Akufo-Addo took over.”
According to him, “through a combination of prudent policies in the real sector, prudent fiscal and prudent monetary policies inflation is now at 7.5%.”
A sharp fall in inflation, growth in the economy, were the key issues looked at as the basis for saying the economy has been restored to a strong foundation.
He said that the President during the meeting instructed the various agencies who have worked to achieve this to keep on the downward inflationary path so that Ghanaians continue to benefit from relatively lower rate of price increase.
Growth of the Ghanaian economy had slowed down to 3.4% at the end of 2016.
Through the various interventions of government particularly in Agriculture (PFJ, PERD, RFJ) growth has seen a rebound and is projected to remain above 6% by the end of 2019.
The annual budget deficit, which accounts for the year on year gap between revenues and expenditure has closed significantly.
In 2016 it was at 9.3% and has now been reduced to 4.7% this year 2020 with a legal commitment to ensure that it doesn’t exceed 5%.
In 2016 the Interest Rate (Int Bank Wgted) as at 2016 was at 25.26. it was reduced to 19.34 in 2017 when Akufo-Addo assumed Office and is recorded a reduction to 15.20 as at September.
The President has been consistent in urging the central bank to explore ways to push this further down and make cost of borrowing cheaper for the Ghanaian private sector, Mr. Oppong Nkrumah said.
Gross International reserves constituted 3.5months of Import cover as at Dec 2016, he said, adding with gains in exports the Akufo-Addo administration has increased it to 4.1% of import cover as at sept, despite BOGs support during some of the trying moments of our currency.
All in all, evidence is that the fundamentals of the economy have been significantly strengthened, according to him.
Mr President is resolute in his marching orders to the Finance team to ensure this is observed, the Minister said.
The President has instructed that resources be made available to continue with programs to engineer growth and jobs across various economic sectors, he revealed.
This will ensure that our economy continues to create more opportunities for the majority of Ghanaians, the Minister said.
According to him, it was agreed that other statutory obligations of the year are to be carried out with national resources in line with the Ghana Beyond Aid Agenda.
He stressed that “this is a critical feature of the Ghana beyond aid agenda which requires us to focus more on generating internal resources to meet our key obligations as a state.”
Flagship programs of Government are to be completed in the 2020 Budgets, he said, adding that the President made it very clear that he will not take any breeches in the delivery of development programs.
The flagship programs, he said, are about 16 and include the Free SHS, One District One Factory.
“Mr President has instructed that no resource should be spared in ensuring that the 1.2 million Ghanaian children benefit fully and are prepared to contribute significantly to Ghana’s future growth,” he said.
He said the President and the Minister’s were very upbeat about ending the year on high fiscal economic performance and delivering a budget for 2020 which will consolidate the gains made so far.
BY Melvin Tarlue