The Government will ensure Ghana's overall fiscal deficit in 2020 and will remain within the Fiscal Responsibility Act Threshold of not more than five per cent of gross domestic product (GDP).
"Following our significant progress in restoring macroeconomic stability over the past 32 months, we will continue to implement policies and programmes to ensure the fulfilment of our promises to our people,"Mr Ken Ofori-Atta, Minister of Finance stated in his 2020 Budget Statement and Economic Statement to Parliament in Accra.
He said the following macroeconomic targets were set for the medium term (2020-2023) overall Real GDP growth to average 5.7 per cent for the period and on-Oil Real GDP to grow at an average of 5.9 per cent for the period.
He said within the period, inflation would be within the target band of 8.2 percent; the primary balance to be in a surplus; and gross International Reserves to cover at least 3.5 months of imports of goods and services.
Mr Ofori-Atta said based on the overall macroeconomic objective of "Consolidating the Gains for Growth, Jobs, and Security", the following specific macroeconomic targets have been set for the 2020 fiscal year:
Overall Real GDP growth of 6.8 per cent; Non-Oil Real GDP growth of 6.7 per cent; and End-period inflation of 8.0 per cent.
Others are Fiscal deficit of 4.7 per cent of GDP; primary surplus of 0.8 per cent of GDP; and Gross International Reserves to cover not less than 3.5 months of imports of goods and services.
Mr Ofori-Atta said to further strengthen their commitment to maintaining fiscal discipline, the focus of fiscal policy in 2020 was to ensure that the fiscal deficit, which remains the principal fiscal anchor was reduced to low and sustainable levels, enough to reduce the overall public debt burden and create the needed fiscal space over the medium-term.