Ghana’s budget deficit narrows

Ghana's President John Dramani Mahama is pictured in this file photo.

Ghana's President John Dramani Mahama is pictured in this file photo.

Published Aug 12, 2015

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Accra - Ghana is on track to narrow the budget deficit more than its target this year, president John Dramani Mahama said.

The gap will fall to 7.2 percent of gross domestic product, below the government’s goal of 7.5 percent, Mahama said in an interview broadcast on Joy FM on Wednesday.

“We have taken some tough decisions,” he said.

“We are seeing a turnaround. The second-quarter figures look even better than the first quarter. Fiscal consolidation is taking place.”

The nation’s currency is stabilising and inflation will slow before the end of the year, pushing borrowing costs lower, Mahama said.

The government has made difficult decisions that were necessary, including ending fuel subsidies and turning to the International Monetary Fund for a loan of about $1 billion to support the currency and narrow the fiscal gap, he said.

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