Finance Minister, Mr. Ken Ofori-Atta has projected that the country will experience an economic growth of 0.9% for 2020.
He also says that, they expect the budget deficit to more than double.
These projections, according to the Finance Minister, is a result of the fall in oil prices and the effect of the coronavirus pandemic on global economies.
Responding to this, the Institute of Social, Statistical and Economic Research of the University of Ghana, says that the projections, which could have repercussions on economic activities in terms of employment and livelihoods calls for the government to provide targeted support.
Analyzing the 2020 Mid-year budget review at a press briefing, Director of ISSER, Prof. Peter Quartey, explained that this support are in terms of access to cheap credit with flexible payment terms.
He believes that this would go a long way to stimulate economic growth in the country.
Prof. Peter Quartey also described the fiscal measure and initiative as achievable but was quick to add that it was dependent on the extent at which the country is able to contain the spread of the virus and return economic activities to some semblance of normalcy.
In a media engagement, Prof. Peter Quartey called on the government to track its Covid-19 expenditure to avoid misuse of funds.
In a media interaction, he expressed fears that the absence of proper monitoring of Covid-19 funds meant to support various sectors of the economic would be misused.
“What government needs now is to do more of expenditure tracking because the last time we did one was in 2007, so we need to do expenditure tracking to track the various expenditures right from the disbursement stage to the internal beneficiary”.
He explained that if that is done, the government might not be forced to borrow more.
“Once we are able to do that, perhaps we may not need to be borrowing at the rate at which we are borrowing now. We will have value for money for every item of expenditure. In this covid era, if you are not careful people will hide behind covid and misuse the public funds and we want to avoid that so let’s do more of expenditure tracking”