Ghana Ready to Revise 2016 Budget if Necessary, Terkper Says

  • Government committed to fiscal discipline in election year
  • Biggest risks to growth from commodity prices, wage growth

Ghana is reviewing its budget for 2016 and is ready to revise it if necessary, Minister of Finance Seth Terkper said.

The government is monitoring oil prices and will go to Parliament with revisions if prices continue to plunge, he told reporters in Accra, the capital, on Tuesday. There is “strong political will” backing fiscal consolidation, he said.

“We are weighing options and scenarios and may go to cabinet and parliament to revise the budget if need be,” he said. “We don’t want to rush. If prices go further down we will then go to Parliament to revise the budget.”

Oil producers around the world are revising budgets after crude fell to the lowest since 2002 last month, sapping revenue needed to meet fiscal goals. The average crude price this year would need to be about 75 percent higher than the price in London today for Ghana to meet its fiscal deficit target set in the 2016 budget.

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