The Minister of Finance, Dr. Mohammed Amin Adam, is expected to deliver the government's mid-year budget review statement before Parliament on Tuesday, July 23, 2024.

The review typically provides an update on the country's economic performance, fiscal policies, and adjustments to the main budget for the remainder of the year.

This presentation is also crucial as the country heads to the polls on December 7, 2024, with the government expected to spend within its budget.

Additionally, budget reviews often have political implications, influencing public opinion and government popularity depending on the perceived impact on citizens' lives and the economy in general.

While Ghana remains under an IMF program for a three-year period, the challenges posed by the economic headwinds continue to persist despite the government making some gains with the hope of consolidating them.

For instance, the performance of the local currency continues to decline against major trading currencies. The cedi is currently selling at a rate [GH¢15.75] that significantly impacts the cost of living particularly for goods and services.

Inflationary pressures continue to persist despite a decline in figures in the last two months of this year.

Overall, the presentation of the mid-year budget is expected to assess the country's fiscal health, economic trajectory, and the effectiveness of government policies while also providing transparency and accountability to the general public and international stakeholders.

GhanaWeb Business takes a look at some general expectations from the 2024 mid-year budget review:

1. Economic Performance Update: The mid-year budget review will likely include an assessment of Ghana's economic growth rate, inflationary figures, unemployment, and other key economic indicators. This aspect of the presentation will provide stakeholders with an insight into how well the economy is performing compared to initial projections.

2. Revenue and Expenditure Adjustments: While indications from key government officials suggest that no new taxes will be introduced, the finance minister will likely announce during the review presentation some adjustments to revenue targets or expenditure projections based on actual revenues generated and spending patterns in the first half of the year. This could, however, involve changes in allocations to different sectors such as infrastructure, health, education, and others.

3. Debt and Fiscal Deficit: It is expected that the Minister of Finance will provide updates on the country's debt situation (domestic and external) as well as fiscal deficit. This is crucial as it impacts Ghana's ability to finance its budget and may influence investor confidence and credit ratings.

4. Policy Adjustments: Based on economic performance and revenue projections, the government could announce some new policies or make adjustments to existing policies that aim to stimulate economic growth, control inflation, or achieve other economic objectives.

5. Sector-Specific Updates: There may be specific updates related to key sectors of the economy such as agriculture, finance, mining, energy, and others. This could include policy changes, investment plans, or challenges faced by these sectors.

6. Impact on Citizens: The mid-year budget review could touch on how these budget adjustments and economic policies will affect the average citizen, particularly in terms of employment opportunities, the cost of living, among others.

7. International Relations and Trade: The mid-year budget review could touch on Ghana’s international trade agreements, foreign direct investments, support from international donor partners, external debt restructuring updates, and Ghana’s overall position in the global economy.

MA/AE