Claim: Comparing Ghana’s fiscal deficit in 2016 and 2019
Source: Fatimatu Abubakar
Verdict: FALSE
Researched by Benjamin Tenkorang
The Minister for Information designate, Fatimatu Abubakar, speaking on Asempa FM’s Ekosiisen talk show has claimed that Ghana recorded a fiscal deficit of about 8.4% in 2016 and 4.1% in 2019.
The talk show hosted by Osei Bonsu (OB) was streamed live on YouTube on February 27, 2024 hours after President Nana Addo Dankwa Akufo-Addo’s presentation of the State of the Nation’s Address (SONA).
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Speaking in an indigenous Ghanaian language–Twi, the minister designate said, “When examining the fiscal deficit for 2016, it was about 8.4%. We managed things so that we had single-digit inflation when our government largely took over under the first term and a 4.1% fiscal deficit as of 2019.” (1:52:13 – 1:52:51)
This fact-check report seeks to verify:
- Whether the fiscal deficit for 2016 was about 8.4%.
- Whether the fiscal deficit for 2019 was 4.1%
Fact Check
A fiscal deficit is a shortcoming in the income of a government as compared to its spendings.
The International Monetary Fund (IMF) staff report for the 2017 Article IV consultation shows Ghana recorded a 9.3% fiscal deficit at the end of 2016.
“The cash-based fiscal deficit turned out at 9.3 percent of GDP in 2016 relative to the program target of 5.2 percent of GDP, reflecting broad-based revenue underperformance and significant expenditure overruns,” the IMF report said.
Checks from Ghana’s 2017 Budget Statement and Economic Policy also show overall budget deficit for 2016 was 8.7% of GDP and not 8.4%.
Meanwhile, according to the Ghana Revenue Authority’s (GRA) 2019 Annual report, the headline fiscal deficit was 4.7% of GDP in 2019, while the overall fiscal deficit, including financial and energy sector costs, reached 7% of GDP.
This was reiterated in the IMF Executive Board 2019 Article IV Consultation with Ghana where the report states that: “After including energy and financial sector costs, this corresponds to an overall deficit of 7 percent of GDP in 2019.”
GhanaFact previously debunked a similar claim made by the Vice President, Dr Bawumia, during a public lecture on February 7, 2024, on the University of Professional Studies campus in Accra.
Verdict
Therefore, the claims are inaccurate and false.
