Ghana unveils supplementary budget 2011

DAKAR: Ghana's Finance Minister Kwabena Duffuor on Thursday requested parliament's approval for 1.46 billion cedis of additional spending in 2011.

Duffuor told Parliament Ghana expects the economy to grow at 14.4 percent in 2011, up from a previous forecast of 12.3 percent.

He said the new 2011 budget target was 5.1 percent of GDP, compared to an earlier forecast of 4.1 percent.

Here are initial analyst reactions:

SAMPSON AKLIGOH, DATABANK FINANCIAL SERVICES

"I think the move on raising the deficit to 5.1 percent of GDP is in the right direction and will not put pressure on real interest rates, bearing in mind the fact that the government is deepening its debt profile and opening up foreign participation in medium- to long-term instruments."

RAZIA KHAN, STANDARD CHARTERED BANK

"The main thing people have been looking out for is evidence of fiscal consolidation.

No one should be too surprised about an increase in spending ahead of the election but this is in the ballpark range of what a good outcome would have been. The 5.1 percent deficit target speaks of consolidation"

Copyright Reuters, 2011