Question

It is said that, the national budget is an annual development plan for the state and it is more than
ordinary financial statement. Covid-19 epidemic outbreak has had a devastating impact on most
economies specially Ghana. It therefore requires expert knowledge and prudent economic
decision making to recover the economy. As a special assistant to the Minister of Finance,
indicate the macroeconomic targets you will consider appropriate to be factored into 2021
national budget? Demonstrate clearly in each case how the performance targets set could be
achieved using appropriate economic policy measures.

Answer 1

Macroeconomic targets I'll consider to be factored into protection of 2021 national budget are as follows-

A. I'll will be trying to improve the public expenditure in order to help the citizen in order to have higher Liquidity in their hands.

B. I will be trying to reduce the tax rate in order to help the people in order to have higher income in their hands so that they can protect themselves in case of adverse economic situations.

C. I will also be advising the ministry about bailout packages to a specified group in order to help them to counter the the recessionary situations.

D. I will be trying to help the the ministry to recommend the central bank in order to have a quantitative easing policy so that they can reduce the interest rates and increase the money supply in to the economy.

E. There should be a focus on liberating the laws so that it higher profits should be reported and higher money flow can be generated in the economy.

F. There should be promotion of favourable credit reason which will be helpful in order to promote new and small businesses which can report higher profits and increase the money supply in to the economy.

At this time of economic turbulence I would be highly liberal and I will be considering lower performance target because there is a objective of stabilizing the growth rate into the economy