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Inflation expected to remain in single digit in 2013 – Finance Minister
Posted on: 05-Mar-2013         Source: GNA
Mr Seth Terkper, Minister of Finance and Economic Planning, on Tuesday said economic growth is projected to remain strong and inflation also expected to remain in single digit in 2013, in spite of the fiscal challenges and risks that confront the economy.

In his 2013 Budget read before parliament in Accra, Mr Terkper said the theme for 2013 was “Sustaining Confidence in the Future of the Ghanaian Economy”.

He said measures would be taken to protect the credibility of fiscal policies and the deficit target, saying strong monetary policy stance was expected to be maintained to ensure the stability of the cedi and support the single digit inflation target.

Mr Terkper said the fiscal programme would hinge on the rationalisation of expenditure and strengthened revenue collection. This would include the gradual shift of the basis for budgeting and financial accounting from cash to commitment or accrual basis.

He said Public Financial Management would be strengthened within the context of the macroeconomic policies and fiscal discipline to prevent overspending and avoid new arrears accumulation.

According to the Finance Minister, the implementation of the Ghana Integrated Financial Management Information System (GIFMIS) was expected to reduce the occurrence of outstanding payments and help with implementation of the realignment of the Budget that was mentioned by the President in his State of the Nation Address.

On the issue of fiscal policy, Mr Terkper noted that over the medium-term, it would aim at ensuring fiscal prudence and debt sustainability through improved revenue mobilisation and rationalising and enhancing the efficiency of public expenditures, as well as reviewing the capital expenditure and financing methods.

“Government would continue to resource the Ghana Revenue Authority (GRA) to improve their efficiency in the collection of revenue”, he added.

“Specifically, fiscal policy would focus on resourcing the GRA to improve their efficiency in revenue collection, ensuring transparent, effective and efficient natural resource revenue management, including oil and gas revenue management, continuing with the on-going reforms to strengthen public financial management, management of fiscal risks and cash management to ensure that spending is kept within budgetary limits”.