The Minister for Finance, Yaw Osafo-Maafo has revealed that government is aiming at a 4.7% real growth in Gross Domestic Product (GDP) for 2003. In view of this, the Ghanaian Government is in agreement with the International Monetary Fund (IMF). Last year’s GDP growth target was 4.5%.
Government is also ambitiously aiming to bring inflation down from 15.2% as at the end of 2002 to a single digit by the end of this year.
Last year, government set a target of 13% but failed to achieve it and with utility prices being hiked in the first quarter of this year, and the government still warning of tougher times ahead, it is not very likely that there will be more success this year.
Once again, government will attempt to build Ghana’s gross external reserves to cover at least three months of imports. Considerable success was achieved last year with Ghana’s reserves reaching 2.5 months import cover by December up from barely a month in April.
Following the disappointing shortfall in donor receipts during 2003, government will this year seek to boost its revenues through increased domestic budgetary financing, thereby reducing reliance on notoriously unstable donor inflows. However, expenditures are expected to rise sharply too as negotiations are underway for increase in wages and salaries.
Actually, government intends to significantly reduce its work force this year but this will not cut expenditures, as those who are retained will be entitled to higher wages. The final details of the 2003 fiscal budget are now being worked out.
