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Finance Minister presents supplementary budget
Accra, Aug 25, Ghanadot/GNA –
Finance Minister Dr Kwabena Duffuor, on Tuesday presented a
supplementary budget to Parliament to appraise members on
the performance of the economy and revise the budget
estimates based on current information.
It will also look at the challenges and outlook for the rest
of the year and to seek approval for appropriation of an
additional 252.85 million Ghana Cedis.
“The aim of this review and supplementary budget is to seek
Parliamentary approval to commit the required additional
resources to address the inadequacy of the amount of monies
approved under the 2009 Budget,” he said.
The funds will be used to resolve the domestic interest
costs and to liquidate some arrears and other outstanding
commitments.
Dr Duffuor said the Government inherited a rundown economy
characterized by severe imbalances that resulted in a huge
public debt and a ballooned overall budget deficit of 14.5
percent of GDP.
The huge deficit, he said, did not include expenditure
arrears and commitments which are currently estimated at
about 1.7 billion Ghana Cedis, equivalent to 9.7 percent of
GDP for 2008.
The Minister said the overall budget deficit, including
divestiture receipts, would have been in the threshold of
24.2 percent of GDP if the arrears and commitments had been
taken into account.
The Minister said excess expenditure resulted in rapid
depreciation of the Cedi against currencies of major trading
partners during the first quarter of 2009.
However, he said, through the prudent management of the
economy, the government had
arrested the free fall of the Cedi.
GNA
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