Disappointing oil output and higher-than-expected spending on elections and energy sector debts, the economy will miss its budget deficit for 2016, Finance Minister Seth Terkper said.
The economy will miss its fiscal shortfall aim of 5.3 percent of gross domestic product by 1.5 to two percentage points, Terkper told reporters Tuesday in the capital, Accra. Ghana’s shortfall in 2015 was 6.3 percent of GDP, he said.
“The higher deficit was on account of FPSO shutdowns resulting in lower crude and gas output,” he said, referring to the outage in the second quarter of an offshore oil field operated by Tullow Oil Plc.
Budget Deficit
The budget deficit exceeded 10 percent of GDP from 2012 to 2014.
The country’s debt stabilized at between 68 percent to 70 percent of GDP in the past three years while the government won’t draw on any funding from the central bank in 2016, in accordance with the IMF’s criteria, Terkper said.
Ghana’s sinking fund, created by Terkper for the payment of debts, has a balance of $300 million, Deputy Finance Minister Cassiel Ato Forson said at the same event.
Bloomberg