Ahead of the mid-year budget review presentation to Parliament, Finance Minister Dr. Mohammed Amin Adam is seeking the support of the banking sector to help consolidate Ghana’s fiscal gains.
Dr. Adam emphasized the crucial role the banking industry plays in business growth and economic development. Speaking on the sidelines of a stakeholders’ engagement on the 2024 budget, he highlighted the importance of the banks’ alignment with the government’s fiscal strategies. “We expect the mid-year budget review to announce measures on how we can promote economic growth. Getting the banks to understand and align with our expectations is crucial because they will play a key role in financing private sector participation, which is essential for achieving an accelerated growth rate for the development of our country,” he said.
He also revealed that “we are also discussing amendments to the Fiscal Responsibility Act. We are exploring various possibilities that will impose fiscal rules on debt levels,” as part of efforts to maintain fiscal responsibility under the IMF programme.
The minister’s outreach to stakeholders and business associations aims to ensure that government policy reviews are well-supported and contribute to a comprehensive policy framework for the upcoming budget review.
John Awuah, Chief Executive Officer of the Ghana Association of Banks, expressed the sector’s readiness to support economic recovery. “As banks, as long as it does not unduly impose risks on the industry, we are ever ready to support economic recovery. We understand that as the economy recovers, it creates a sound environment where businesses can thrive, allowing banks to provide the needed support without increasing the impairment risks we are currently facing,” he stated.
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