Accra - Ghana will cut its 2014 economic growth forecast and edge its budget deficit target higher in a supplementary budget due to be presented on Wednesday, senior government sources told Reuters.

The projected budget gap will rise to 8.8 percent of GDP from an initial 8.5 percent, the sources told Reuters.

Finance Minister Seth Terkper will also announce a lower growth forecast of 7.1 percent, down from an initial 8 percent, when he reads the budget to parliament later on Wednesday.

The inflation target will be raised to 13 percent, plus or minus 2 percent, from 9.5 percent.

The sources said the budget revision has become necessary to take account of a shortfall in projected tax revenue and donor inflows.

“It is not about spending more, rather it has got to do with not realising the expected revenues and inflows,” one of the source said, requesting anonymity.

The West African state, which exports gold, cocoa and oil, is seen as one of Africa's brightest prospects because of its stable democracy and strong growth in the past.

But the government is under pressure to stabilise public finances, especially a stubborn budget deficit and increasing public debt while the local currency has slumped around 30 percent since January. - Reuters