Advisor to the Bank of Ghana Governor, Professor John Gatsi, has indicated the government will prioritize increased capital expenditure in its upcoming mid-year budget to stimulate economic activity and preserve macroeconomic stability.
Speaking to 3Business on July 23, Prof. Gatsi confirmed the fiscal measures will target infrastructure and productive investments while enhancing revenue streams.
Gatsi dismissed claims of reduced government spending, stating, “It’s inappropriate to say we are not spending.” He emphasized expenditure would rise but cautioned that revenue expansion remains critical to fund these initiatives. The mid-year review, scheduled for presentation by Finance Minister Cassiel Ato Forson on July 24, aims to address subdued economic growth amid global pressures and domestic fiscal adjustments.
The economist acknowledged concerns over low economic activity in early 2025 but affirmed the budget would introduce interventions to consolidate recent gains. “This budget will provide the private sector with needed support,” Gatsi noted, underscoring plans to boost investor confidence through targeted spending. The strategy aligns with the Mahama administration’s efforts to balance stability with growth amid sluggish economic conditions.
