The Minister of Finance, Seth Terkper, is expected to move a motion in Parliament today for the approval of a supplementary budget to support the 2016 budget and economic policy of the government.
The minister will present a review of the macro-economic targets set in the 2016 budget and, possibly, request for additional funds to support the programmes and activities of the government for the remaining half of the year.
The overall GDP target and non-oil GDP targets in the 2016 budget are likely to be reviewed. However, it is unclear whether there would be an upward or downward review.
The end-year inflation is also another possible indicator which might be reviewed by the government.
Total revenues and grants, including oil price assumptions and petroleum receipts for the year, are likely to be affected.
Also, the total expenditure, as well as arrears clearance, might also be reviewed by the government.
Mr. Terkper will further touch on money supply, interest rate, exchange rate, current account balance, gross international reserves, among others.
He is expected to justify the government’s debt management policies as well as the areas it has invested the loans approved by House for the government this year.
Mr. Terkper, in his budget presentation last year, made it clear that the government would not introduce any new taxes this year.
He also indicated that the government had put appropriate measures in place to check its expenditure in order not to exceed its budget deficit, as has been the case in every election year.
The Finance Minister is expected to convince the law makers why they should approve additional resources for the government and explain how the domestic and global economic environment have affected the macro-economic framework and the targets set in the 2016 budget.
He will brief the House on the government’s performance in the first half of the year and enumerate the possible challenges it has faced.
The Majority Leader, Alban Bagbin, urged the law makers to avail themselves for the supplementary budget hearing when he delivered the Business Statement for the week last Friday.
By Yaw Kyei