Finance Minister Dr. Kwabena Duffuor is due to present the Mills Administration’s budget for the 2009 fiscal year to Parliament this morning. The budget to detail how the ruling National Democratic Congress government intends to manage the national purse and reverse the soaring inflation, is also expected to reduce the current fiscal deficit. Ghanaians are highly expectant of measures to cut government spending and administer a lean government, after President Mills at his first State of the Nation Address to Parliament indicated a desire to drive in that direction. Inflation rate presently stands at 19.86%, the highest since November 2004 and only last month, the Bank of Ghana raised the prime rate to 18.5 per cent from 17 with a policy bias towards interest rate reduction. The business community have been sharp in criticizing the direction, insisting mainly that it cannot instigate growth, which should be the agenda for any intervention aiming for eventual positive performance. Governor of the Bank of Ghana, Dr. Paul Acquah explained that monetary policy tightening was highly necessary to break the dynamics of price inflation and exchange rate as a result of the global economic crises. It will therefore be interesting what mixes the government would be outdooring to address concerns of business and still keep the tabs on the cedi from falling. On the streets, many are hopeful the government will stay disciplined and relate the budget to electioneering promises, and for others, balancing sweeping campaign promises and practical realities will present the government with very difficult challenges. By Isaac Yeboah