ACCRA: Ghana has raised its 2017 economic growth forecast to 7.9 percent and expects 6.8 percent growth next year as the economy recovers, Finance Minister Ken Ofori-Atta said in a budget presentation on Wednesday.
The budget, the second since President Nana Akufo-Addo assumed office in January, comes as the cocoa, gold and oil exporter follows an International Monetary Fund loan programme to reduce its fiscal deficit and public debt and stabilise the volatile local currency.
The government aims to cut its budget deficit to 4.5 percent of GDP in 2018 from a revised 6.3 percent. Inflation is projected at 8.9 percent compared to 11.2 percent previously, Ofori-Atta said in a budget speech to Parliament.
"All the indicators are improving. Inflation is coming down, interest rates are declining and the government has significantly stabilized the power situation enabling industries to function," Ofori-Atta said in a 150-minute speech.
He outlined proposals to reduce electricity tariffs by 13 percent for residential customers and up to 21 percent for industry.
The government plans to spend a total of 62 billion cedis ($13.74 bln), the equivalent of 25.7 percent of GDP and 14.5 percent more than the previous year's budget, he said. The planned expenditure includes provisions for debt arrears payments.
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