The President of Ghana, Nana Akufo-Addo has taken power with ambitious plans to revive once spectacular economic growth, only to discover a $1.6 billion hole in the budget and a deficit twice as high as expected.
According to Ceoafrica, the country has a vigorous democracy, with voters ready to eject any leader who falls short of expectations. But for a third successive time, the national finances have gone off track before elections, forcing the winner to confront a fiscal crunch.
With Ghana more than half way through a three-year International Monetary Fund program, the new government must reveal in its first budget next month how it intends to restore financial discipline while staying true to Akufo-Addo's election promises to boost growth and fight poverty.
Akufo-Addo entered office last month on pledges to spend the equivalent of $1 million a year on development in each of Ghana's 275 parliamentary constituencies, build a dam in every village to ensure reliable water supplies and bring a factory to every district.
In winning a big victory in December over incumbent John Mahama, he also promised to cut taxes. His plan is to stimulate private sector investment to raise economic growth, which peaked at 14 per cent in 2011, back into double digits from around 4 per cent last year.
The government said last week it would follow through on its promise to make secondary school education free.
It has adopted a triple track approach: preparing the budget, reassuring investors who are major holders of Ghana's local currency and dollar debt that it will not overspend, and holding fresh talks with the International Monetary Fund, (IMF).