Finance Chief Amin Adam vows fiscal restraint this election year

In a bid to uphold fiscal responsibility amidst the challenges of an election year, Finance Minister Dr. Mohammed Amin Adam, alongside Minister of State at the Finance Ministry, Abena Osei-Asare, have underscored a steadfast commitment to prudent budget management.

Speaking during a press briefing to conclude this year’s IMF/World Bank April Spring Meetings, Minister Dr. Adam emphasized a resolute stance against extra-budgetary spending, affirming that the government would operate within the confines of the approved 2024 budget.

This declaration comes in the wake of previous fiscal slippages during election cycles, with the Minister adamant that the current year will mark a departure from past practices.

“On the expenditure side, I have already declared my stance that we are not going to do extra-budgetary spending, we are going to spend within the budget and I have said this many times and I will ensure that everybody comes in line with the fiscal path we have presented to parliament.

“So yes in the previous election years, we’ve had fiscal slippages but this election year will be different because we are going to ensure that we work within the budget and there are some measures we have put in place to make sure that we keep ourselves within the budget,” he noted.

Echoing Minister Adam’s sentiments, the Minister of State at the Finance Ministry, Abena Osei-Asare highlighted the government’s proactive measures to ensure fiscal integrity. Notably, efforts include engaging with ministries, departments, and agencies to communicate the fiscal trajectory set forth by the Ministry, as well as bolstering revenue collection through support for the Ghana Revenue Authority.

“The Minister has gone ahead to meet the Ministers at the various Ministries, Departments, and Agencies with their Chief Directors and let them know that this is the programme we are going to pursue especially for 2024 and beyond.

“Again, he has undertaken some measures to see to it that the revenue measures in the budget which has been approved by Parliament for us will be met by supporting the GRA to implement them,” she quipped.

Moreover, Ms Osei-Asare underscored ongoing reforms aimed at enhancing expenditure control, with a particular emphasis on integrating financial management systems across government entities.

This strategic move seeks to streamline revenue capture and align expenditure with approved budgets, thereby mitigating the risk of fiscal imbalances.

The government’s resolve to adhere to budgetary constraints has been further underscored by its commitment to arrears control measures and transparent fiscal governance.

“Again we also have arrears control measures that have been put in place, and currently we are sticking to the control measures that Parliament has approved for us in the 2024 budget. So clearly we are on course and we ask that you all support us to work within the budget and make sure that in this election year we do the needful, not just for anybody but ourselves, and make the economy better,” she noted.

With a plea for public support in navigating the challenges of the election year, Ghana’s finance officials are signaling a proactive approach to economic stewardship, grounded in fiscal prudence and accountability.

Ghana is known to usually overspend during electioneering years resulting in major fiscal slippages.

This is even after the country has made significant strides in fiscal consolidation and revenue enhancement in the years prior to the election year.

Source: Norvanreports