Supplementary Budget Depends on Fiscal Performance – Economist

Lawyer Daniel Anim Prempeh, an economist, says the need for a supplementary budget will depend on the direction the Finance Minister intends to take in the financial year.

Speaking via zoom interview on Kessben TV’s Digest, in lieu of the 2026 mid-year budget review, he explained that a supplementary budget is only necessary when government faces unforeseen expenditure or revenue shortfalls, stressing that it is not a mandatory part of every budget review.

He noted that if government keeps expenditure within the approved budget and remains on track with revenue mobilization, there will be no need to seek additional funds. He added that although it has been a norm that in every supplementary budget, they ask for additional money but it was not the case this time.  He added that Ghana’s macroeconomic indicators are improving, giving the Finance Minister confidence to meet his revenue targets, maintain expenditure within budget, and end the year with a single-digit fiscal deficit, provided there are no major external economic shocks.

Lawyer Anim Prempeh, however, cautioned that political considerations can sometimes influence decisions on supplementary budgets and urged government to base such decisions on sound economic fundamentals rather than politics. It could also indicate that the macro economic fundamentals are quite firm and solid and showing a positive signal. The Finance Minister would want to make a justification to the fact that indeed he is stabilizing the economy things are falling in the right perspective and as a result there will not be any need to ask for supplementary budget.

By Mercy Asane Baah