The Minister for Finance, Ken Ofori–Atta, is expected to appear in Parliament later today [Thursday, August 6, 2020] to provide justification for the suspension of the fiscal rule for the 2020 financial year.
The fiscal responsibility act makes it an offence for the annual budget deficit to exceed five percent of GDP.
But the Minister made known his intentions to suspend the rule in the mid-year budget review due to the impact of COVID-19 on government’s projections.
Minister for Monitoring and Evaluation and Member of the Economic Management Team, Dr. Anthony Akoto Osei told Citi News that the justification has been reviewed and the finance committee deems it to be proper.
“The law allows the Minister to suspend the rule under certain conditions and the law says that he must provide a justification… He has brought it, the committee has reviewed it and it is proper and so we will come and report to the house.”
Besides the Minister’s justification before the plenary, the Finance Committee of Parliament will also present its report on the suspension to the plenary.