The International Monetary Fund (IMF) has revealed that Ghana’s fiscal performance is on track to achieve a primary surplus of half percent of Gross Domestic Product (GDP) on a commitment basis.
This is despite emerging spending pressures stemming from a recent dry spell and challenges in the energy sector.
It is coming after the Executive Board of the International Monetary Fund (IMF) has completed the third review of Ghana’s 36-month Extended Credit Facility Arrangement.
Looking ahead, the IMF said the Ghanaian authorities are committed to further advancing fiscal consolidation by attaining a primary fiscal surplus of 1½ percent of GDP in 2025 through additional domestic revenue mobilization and non-priority expenditure rationalisation, while expanding social programmes to cushion the vulnerable from the impact of policy adjustment.
It added that “Continued fiscal consolidation and discipline are predicated on timely and continued efforts to modernise Ghana’s fiscal responsibility framework, strengthen revenue administration, bolster public financial management, and improve SOEs [State Owned Enterprises] management, including to tackle challenges in the energy and cocoa sectors”.
Furthermore, the Fund, said the Bank of Ghana (BoG) has maintained a prudent monetary policy stance to sustain a continued reduction in inflation against heightened risks and has taken important steps to rebuild international reserves.
“The BoG has also appropriately strengthened measures to buttress financial sector stability by intensifying actions to promote timely recapitalization and steps to sustain the viability of banks. The government has started recapitalizing state-owned banks consistent with available resources”.
“Ambitious structural reforms to help create an environment more conducive to private sector investment, and to enhance governance and transparency remain key to boosting the economy’s potential and underpinning sustainable job creation”, it mentioned.
IMF Board approves $360m bailout package for Ghana
The Executive Board of the International Monetary Fund (IMF) completed the third review of Ghana’s 36-month Extended Credit Facility Arrangement.
This allows for the immediate disbursement of SDR 269.1 million (about US$360 million) to the country.
The Fund said Ghana’s policy and reform efforts under the IMF-supported programme have continued to deliver encouraging results.