Budget 2015 to contain significant cuts

Significant cuts in government expenditure are expected in the 2015 Budget, which will be presented today by Finance Minister Seth Terkper.
Economic analysts say austere measures are inevitable if is to secure the $800 million it is seeking from the International Monetary Fund (IMF) in a three-year programme.
“This budget will be seen as the most likely sign that Ghana has reached an agreement with the IMF on the measures that it will adopt to qualify for IMF assistance,” Razia Khan, head of Africa research at Standard Chartered Bank Plc in London, told Bloomberg on Tuesday.
However, a reduction in spending and a higher cost of borrowing will limit economic growth to 4.5 percent in 2015 from a forecast of 5.7 percent this year.
Government is also expected to outline additional measures in the 2015 budget to check the rising wage bill for public sector workers.
This could see government freeze any increment in wages, eliminate ghost workers from its payroll and be selective on capital project spending.

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