Ken Ofori-Atta faces the challenging task of presenting a national budget for 2024 amidst a debt restructuring process, all while adhering to the fiscal constraints set by an International Monetary Fund (IMF) program.

Complicating matters further, Ghana finds itself excluded from global capital markets. Additionally, the upcoming election, where Vice President Mahamudu Bawumia is anticipated to contend against former leader John Mahama, adds a political dimension to the fiscal scenario.

The government is under pressure to rebuild investor confidence and restore credibility, especially given the country's descent into a debt trap.

Demonstrating a firm commitment to increasing revenue and restraining expenditures is crucial. Considering the minister's track record, having implemented levies in the previous year, there is a possibility of additional fiscal measures being announced during the budget presentation on Wednesday.

Despite the challenges, some early indicators suggest positive developments in this regard.

“Following a strong performance in the year to date, we expect the 2024 budget to sustain the expansion in government revenue through fiscal reforms,” according to Yvonne Mhango of Bloomberg Economics.

Ofori-Atta might announce a shift toward a modest primary budget surplus for the next year, aiming to prevent a further deterioration of liabilities.

This move is expected to enhance the government's standing with creditors as it seeks their approval for potential losses and secures the next tranche of a $600 million IMF loan.

In a positive development this month, Fitch upgraded Ghana's local-currency credit rating from restricted default following the successful completion of a domestic restructuring, resulting in substantial savings on debt-servicing.

However, the challenges persist. The current high level of total public debt, standing at around 100% of gross domestic product (GDP) before the recent overhaul, leaves little room for the typical election-year spending boost.

The government is mandated to reduce this figure to 55% of GDP by 2028. A weakened currency has led to increased prices, triggering protests in the capital.

Amidst food inflation exceeding 40% and record-high interest rates, Ofori-Atta faces the daunting task of persuading a weary electorate that the fiscal crisis is a temporary setback.