The Minister of Finance, Ken Ofori-Atta has described Ghana’s program with the International Monetary Fund as a necessary pill due to the previous government’s fiscal indiscipline practices.
Speaking on the floor of parliament during the 2019 budget presentation the Finance Minister expressed gratitude to the IMF for the support as Ghana prepares to exit by end of 2018.
Ghana’s original three-year arrangement with the IMF was approved on April 3, 2015 for about US$955.2 million extended credit facility.
Government in May 2018 however made it known that it will request that the International Monetary Fund program be extended until December 2018.
He maintained that Ghana will adopt internal fiscal discipline along with other measures going forward to ensure that Ghana does not return to the IMF.
“We are grateful to the IMF and are determined to maintain a combination of internal economic discipline and vibrancy like Germany that will ensure that we will not have to be rescued in that manner in the future. As our president said never again.”
Outlining some measures in the budget Finance Minister stated that government will put in stringent measures that will prevent state agencies and companies from over spending.
“As we complete and exit the program in 2018, we will among other things legislate a fiscal responsibility roll to cut the fiscal deficit to no more than 5 percent of GDP as part of measures to promote budget credibility and fiscal sustainability. A fiscal council will also be established, while we will strictly enforce the PFM act to promote efficient and effective public financial management. We’ll maximize domestic resource mobilization and increase tax revenue to GDP ratio to levels in line with other middle income countries,” he said.
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By: Bobbie Osei/citibusinessnews.com/Ghana