Mid-year budget: Proposed change in fiscal accounting is a retrogressive & fiscally imprudent step – Terkper

Former Finance Minister Seth Terkper has said that the proposed changes in Ghana’s fiscal accounting from cash to commitment basis as announced in the mid-year budget review presented by Finance Minister Ken Ofori-Atta, is retrogressive.

Presenting the mid-year budget, Mr Ofori-Atta told Parliament that Ghana’s economy is showing signs of stabilization.

He said the implementation of on-going fiscal adjustments and sustained
investments in our people have contributed immensely to the stabilisation we are
seeing in the economy.

The exchange rate has stabilized, inflation has softened, and interest rates have declined since December, 2022, and private investments have been announced due to increased investor confidence in our economy.

Ordinarily, Mr. Speaker, these positive trends should ease the burden on our pockets. As a Finance Minister and a family man myself, I will continue to work hard to build and sustain a favourable macroeconomic environment, and remain confident that the prices of goods and services would reflect the trend for all of us – for our families and enterprises.

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Commenting on the budget presentation n a tweet, Mr Seth Terkper said “Listening to the MYR. The proposed change in our fiscal accounting from Cash to Commitment basis is a retrogressive and fiscally imprudent step.

“The difference leaves out “Arrears” just when we should be adopting a semi-accrual budget accounting basis.”

He added “I appreciate this is the basis of the IMF conditions [“primary balance” driven]. This is not good for a country that has, since 2017, ‘offset’ and pushed arrears to “footnote” or memo standards. Note that we had added an “a/c payable” & receivable modules to GIFMIS in 2016.”