The Mid Year Supplementary Budget 

2015 can easily pass as one of the years during which the interest of Ghanaians in economic issues has been hightened.  

This was due to the energy deficit facing the country coupled with the micro-economic instability, namely high inflation depreciation of the cedi and high interest rates.  

The cedi according to the Bank of Ghana had depreciated by 19 per cent to the dollar on the inter-bank market from the period January to May this year.

Inflation on the other hand which started the year around 16 percent is now hovering around 17 point one percent even though the initial target by the close of the year was projected to drop to nine point five percent with interest rate also between 32 and 35 percent. And the Commercial Banks point to the Bank of Ghana Policy rate which is now at 22 percent. 

Thankfully, the cedi which went up as far as far as four cedis 50 pesewas to the dollar recovered some of the losses. And it is now selling around three cedis 35 pesewas to the dollar.  Finance Minister and the keeper of the national purse, Seth Terkper was upbeat that the gains made by the cedi over the period would help in bringing stability to the economy.  

Mr. Terkper attributed the marginal gains to the fiscal consolidation and the revenue mobilisation enhancement programme rolled out by the government under the IMF package.  On sector by Sector basis, he said the agriculture sector grew by 7 point 4 percent in the first half of this year; compared to the decline of zero point eight percent in 2014.  

The Industrial Sector which recorded a negative one point-eight percent in 2014 inched up by zero point nine percent. And the Services Sector also grew by four point seven percent compared with negative five point five percent last year.  

In summing up the growth of the economy for the first half of the year was put at four point seven percent as against negative three point eight percent in 2014. Total revenue for the period January to May stood at 12 point one billion cedis as against a target of 11 point four billion, which indicates that revenue was more than what was expected for the first five months.  

Comparatively the figure was 25 percent higher than within the same period in 2014. Addressing the energy crisis with focus on industry, especially those into export is critical to prop up the economy.  

A vibrant industrial sector will lead to job creation and improvement in income levels which will result in increase in household income. Another area that needs attention is the management of our resources. Because the debt stock which now stands at 90 billion Ghana Cedis is putting pressure on the national kitty because of interest payment.  

There is also the need to take action on agriculture with a focus on mechanisation. The Minister's statement that about 20 million broilers will be given to poultry farmers to boost poultry production is good news. 

If this is given the needed support, it will go a long way to reduce the import bill of 300 million dollars annually. One welcomes the development of medium term projects such as the TEN, Sankofa and Jubilee Gas fields which are likely to be operational in the second half of next year and will free a lot of resources to help reduce the revenue shortfall due to the fall in oil prices.  

Again, it will also help to address the energy crisis facing the country.  

With the approval of 865 million cedis by Parliament, it is the hope of Ghanaians that the marginal gains recorded during that first half of the year will be sustained and even improve upon before the minister comes to parliament in November with next year's budget.

BY EDWARD NYARKO, ECONOMIC JOURNALIST