IMF Deal: We’ll begin rigorous expenditure cuts – Akufo-Addo

 

President Nana Akufo-Addo has disclosed that his government will begin rigorous expenditure cuts to meet the conditionalities attached to the $3 billion bailout by the International Monetary Fund (IMF).

Mr. Akufo-Addo said his government is eager to turn the fortunes of the country around and will do everything possible to ensure that the ailing economy is revived.

Speaking at the Qatar-Africa Economic Forum in Doha, Mr. Akufo-Addo expressed confidence that the IMF bailout will help revive the Ghanaian economy.

“Rationalisation of our expenditure, rationalization of government expenditure is something that we have given the assurance. Domestic revenue mobilization is absolutely critical for us and already we are seeing signs.

“We have a fiscal responsibility law in Ghana that has pegged our fiscal deficit at 5 percent but already we are way above that and the sooner we can bring that to more acceptable levels the better for us.”

President Akufo-Addo added that Ghana will soon return to the International market to borrow to fund important infrastructural projects. He added that even though his government is in no rush to return to the international market it makes sense to take advantage of the market now.

“We have positioned ourselves to be able to go back into the International market which had been a source of funding for us during the first three or four years of our government.”

The Finance Minister, Ken Ofori-Atta had earlier emphasized Ghana’s commitment to fiscal responsibility, stating that Ghana will not hastily seek to return to the international capital market for borrowing.

Speaking at a press conference on Thursday (May 18), Ofori-Atta highlighted the importance of revenue measures and prudent expenditure management in ensuring financial stability and sustainability.

He further acknowledged the revenue-enhancing measures outlined in the budget, particularly improvements at the Ghana Revenue Authority (GRA), which are expected to provide the necessary resources for the country’s progress.

“There is no rush in going back to the international capital market. Our expectation is that, by managing our expenditure and increasing our revenue, we will have the resources to address our needs.”

 

SOURCE: CITINEWSROOM

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