Budget review: We expect relative stability in the currency – CEO of Chamber of Bulk Oil Distributors

The CEO of the Chamber of Bulk Oil Distributors, Dr Patrick Ofori, has told the Finance Minister that stakeholders expect measures that will stabilise the Cedi in the mid-year budget presentation for 2024.

Speaking to TV3 ahead of the budget review, he said “We expect some comfort, we expect relative stability in the currency because that drives everything.

“We expect that there is going to be some form of reduction in the variable charges that the regulator is charging us, it is something that we are looking forward to.”

For his part, financial analyst Mr Joe Jackson also told the Finance Minister Dr Mohammed Amin Adam to send a clear signal through the mid-year budget review for 2024 that the government will not engage in a spending spree in the election.

This impression, if sent out will contribute to stability in the market, especially the Cedi, he said.

Speaking on News 360 on TV3 on Monday, July 22, Mr Jackson, also Chief Operations Officer of Dalex Finance said “The key thing we are watching out is a clear statement that there will not be the usual election-year spending spree. That truly is what will keep the Cedi stable, that is what will assure businesses and the public that we are not going to go into another spending spree and therefore you don’t have to move your money into a foreign currency to hold.”

Budget review: Resisting spending spree temptation will help stabilise the Cedi – Joe Jackson

The Finance Minister had already said that with five months left to the 2024 Presidential and Parliamentary elections, the government is determined not to overspend its budget.

He further assured that the government would stick to its programmed expenditure of GH¢226.7 billion.

Commenting on this, Mr Joe Jackson said “If there is that clear indication and if they stick to what they have said before that there will be no increase in taxation then we will be fine. Remember this is a mid-year budget review, it is not a new budget totally so there is some limits to what we can expect.”

The Finance Minister Dr. Mohammed Amin Adam, per Section 28 of the Public Financial Management Act, 2016 (Act 921), will be presenting to Parliament, the Mid-Year Fiscal Policy Review of the Budget Statement and Economic Policy of the Government of Ghana for the 2024 Financial Year today Tuesday, July 23.

A statement issued by the Finance Ministry said that the Mid-year review offers an update on the implementation of the 2024 Budget, with insights into the economic and fiscal performance for the first half of the year, including updates on growth measures, revenue, and expenditure performance, financing, debt sustainability, and related matters as well as the IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).

The document will also highlight budget implementation for the rest of the year and a possible review of proposed policies on growth with a focus on SME growth, status on implementation of key government programmes, revenue measures, and expenditure controls, and financing adjustments based on the half-year performance.