Budget review 2018: Low revenue, cedi volatility major headaches – Ofori-Atta

In spite of gains made so far by the Akufo-Addo-led administration as far as the economy is concerned, there still remains some challenges including illicit financial flow, low domestic revenue mobilisation and others that must be addressed immediately, Finance Minister Ken Ofori-Atta, has said.

Apart from these two challenges, he also mentioned the high and increasing rate of tax ratio, currency volatility, relatively high debt burden, the related interest expenses and the cedi bank lending rates.

Presenting the mid-year budget review for 2018 on the floor of Parliament Thursday, 19 July, Mr Ofori-Atta said: “…We have restored workers’ pension funds to the five public sector pension schemes, something that the previous regime was unable to do for seven years.

“That is how we have prudently utilised the very limited resources that we have had these last 18 months to stabilise the economy, invest in our people and ease their heavy burden which translates into real money in the pockets of Ghanaians.”

He added: “As I indicated in the budget statement last year, it is always rewarding when you hear from numerous beneficiaries of these programmes as they recount how these interventions have changed their lives.

“As a country, we continue to face many challenges that we must address. These include low domestic revenue mobilisation, illicit financial flows, impact of oil price increases, the high and increasing rate of tax ratio, currency volatility, relatively high debt burden and the related interest expenses and the cedi bank lending rates.”

Source: Class FM