Deloitte warns govt against spending beyond limit in election year, says it could threaten downward trend in inflation
Published:
3 months ago
Source:
3News
As Ghana heads into a major election on December 7 this year, accounting and auditing firm, Deloitte, has cautioned the government of Ghana against overspending. Deloitte says spending beyond the limit could pose a severe threat to the downward trend in inflation and also the improved currency depreciation. Headline inflation declined to 22.8% in June 2024 from 23.2% in January 2023, per figures churned out by the Ghana Statistical Service (GSS). The downward trend in inflation in 2024 has been largely driven by decrease in non-food inflation, tightening monetary policy, ongoing fiscal consolidation by the government, low volatility of transport fares due to stable crude oil prices, and some base drift effect from previous price increases. In its assessment of the 2024 mid-year budget statement, Deloitte indicated that the downward trend recorded in the year-to-date depreciation and inflation further affirms the view that Ghana's economic recovery process is on track.