Finance Minister Ken Ofori-Atta’s claim of Ghana being on a path to recovery was met with sharp criticism from Minority Leader, Cassiel Ato Forson. Ato Forson refuted the Minister’s statement, stating that the country had turned no corner and, in fact, the situation had worsened under Ofori-Atta’s stewardship.
During the Mid-Year Budget Review in Parliament on July 31, 2023, Ofori-Atta expressed optimism about Ghana’s economic progress since seeking assistance from the International Monetary Fund (IMF). He confidently asserted, “we have turned the corner and, more importantly, we are determined to continue down that path.”
However, Ato Forson vehemently disagreed with the Minister’s assertion. Following the presentation, he dismissed Ofori-Atta’s optimistic outlook, citing evidence and data that showed a deepening of the country’s economic challenges.
Ato Forson highlighted that the revised economic growth projection dropped from 2.8% of GDP to 1.5% of GDP, indicating a deteriorating economic situation. He also criticized Ofori-Atta for going back on his promise not to borrow in 2023, while in reality, substantial borrowing had taken place. The Minister borrowed 5.5 billion Ghana cedis from the T-Bill market from January to June, with plans for an additional 41 billion Ghana cedis borrowing for the rest of the year.
The depreciation of the Cedi, according to Ato Forson, was largely due to defaulting on external interest and principal payments, further exacerbating the economic challenges.
The Mid-Year Fiscal Policy Review is a critical assessment of Ghana’s economic performance and prospects. With conflicting views between the Finance Minister and the Minority Leader, it is evident that addressing the country’s economic woes remains a contentious and pressing issue.