Vice President John Dramani Mahama said on Tuesday that Government would present a mid-term budget to parliament this month to review the fiscal year.
Speaking to the Ghana News Agency on Tuesday in an interview, he said the review would make it possible for government to support the public sector, which had been severely hit by the 2009 budget.
He said through sound economic management, government had paid more than GH¢500 million out of the GH¢1.4 billion arrears, which was owed to contractors.
Mr Mahama said the payment did not cover debts incurred by some district assemblies which had approved contracts that had exceeded their share of the Districts Assemblies' Common Fund.
He said the debt portfolio could not be paid even by 2012.
The Vice President said that was the reason why President John Evans Atta Mill had ordered a forensic audit of the Metropolitan, Municipal and District Assemblies.
Mr Mahama said the ruling National Democratic Congress (NDC) had managed the more than one billion Ghana cedis oil deficit it inherited in such a way that the economy did not grind to a halt.
The Vice President said government had stabilized the cedi and fairly managed the inflation rate, which had started dropping.
He said by next year the current budget deficit would be settled to facilitate salary enhancement for workers.
The Vice President said it was ironic that those who ruined the economy had now turned round to be accusing the NDC government for the hardship the country was facing.
Mr Mahama said the President had no immediate plans to reshuffle its ministers, because some of the members of the Executive had spent barely four months in office.
He said the Policy, Monitoring and Evaluation team had just been put in place to give objective appraisal on the performance of government appointees.