Revenue targets expected from gold for 2016 has also reduced due to a drop in production forecasts for 2016 to 2018.
The damage to the FPSO Kwame Nkrumah’s turret bearing that lasted between March and April 2016 has also led to a reduction in the revenue targets for oil production from the Jubilee fields in 2016.
Fiscal deficit targets have also been reduced from 5.3% of GDP to 5% of GDP. This, according to the Finance Minister, is in line with government’s aim to spend prudently even in the face of the election year.
The fiscal deficit may improve to 3.6 percent of GDP in 2017 and 3 percent in 2018 and 2.3 percent in 2019, the finance ministry said.