Increasing government expenditure threatening economy – BoG

The governor of the Bank of Ghana, Dr Ernest Addison says the rising government spending and weakened revenue levels are the major threats to the swift stabilisation of the economy.

Governor of the Bank of Ghana, Dr Ernest Addison

Answering questions from journalists after the Monetary Policy Committee (MPC) meeting to review the health of the economy this week.

Dr Addison said that some of these concerns forced the Monetary Policy committee to keep the rate unchanged at 16%. This is the fourth time this year that the committee has held the rate since January 2019.

He added that MPC was also worried about continued revenue weakness which requires expenditure adjustments to contain the larger than the projected budget deficit.

He, however, expressed optimism that despite this challenge the situation would improve “full implementation of the new tax measures will likely impact revenue performance in the last quarter”.

This, he also believed that could help achieve the fiscal deficit target set for the year. “If the fiscal situation was better and stable we would have gone down on the policy rate” he added.

He said we should not forget about the fact that Budget is particularly dependent on non-resident financing and we don’t want to take steps that would jeopardize the situation. 

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Why Benzema’s goal against Liverpool was ACTUALLY offside

Why Benzema’s goal against Liverpool was ACTUALLY offside

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Rashid Abdalla's kids interrupt Citizen TV bulletin to wish him happy birthday [Video]

Rashid Abdalla's kids interrupt Citizen TV bulletin to wish him happy birthday [Video]

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Zuchu forced to apologize to fans after viral video raised eyebrows

Zuchu forced to apologize to fans after viral video raised eyebrows