Ghana Finds a $1.6 Billion Hole in Budget

  • Amount uncovered in preparing 2017 budget, vice president says
  • IMF had warned that nation will probably miss deficit target

Customers walk through a market in Accra, Ghana.

Photographer: Ty Wright/Bloomberg
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Ghana’s budget deficit could be twice as big as previously forecast, Finance Minister Ken Ofori-Atta said a day after the government revealed a 7 billion-cedi ($1.6 billion) hole in the budget. The disclosure sent bonds tumbling.

The shortfall as a percentage of gross domestic product could be close to “double digits” for 2016, Ofori-Atta said Wednesday in an interview in Accra, the capital. “We’re still in the process of gathering information” on the undisclosed expenditures, said Ofori-Atta, who will propose the 2017 budget next month.