Ghana’s current economic illness is not going to leave by in any time soon. Economists are predicting tougher time ahead for economic situation in the country.
According to a senior lecturer at the University of Ghana, Ghana could face tough time in near future if the EU does not release funds for its donor budget support for the country.
The European Union has seized budget support to Ghana for some while. In the previous year Ghana received close to 16m Euros from the EU, this includes a 10m Euro Sector Budget Support for the Ministry of Health whereas upto five million Euros for General Budget Support.
And the significant drop in the funds will influence the economy. It is not clear what the factors are for fund freeze.
President John Mahama have appealed EU delegate to Ghana to restore the funds,
“Recently, multi-donor partner support has been withheld from Ghana due to some issues. It is my expectation that as we go along, whatever difficulties exist, we will be able to iron out in order that we see a resumption of this budget support.” He said.
He noted that Ghana needs the support because the EU is a significant international development partner.
University of Ghana economist lecturer explained the situation:
“Whether the budget was cut because of the EPA we have not signed or because we have not used monies that are given us in the past properly that I cannot confirm, but I can say it will make us have some challenges with the budget especially given that the EU is a major development partner of Ghana. It will be very difficult for the government to meet its short to medium term objectives set.”
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