Doubts arise over Gov’t’s ability to maintain expenditure controls in 2024 election year amid $3bn IMF programme
Bright Simmons, Vice President of IMANI Africa, a prominent policy think tank, has expressed skepticism regarding the Ghanaian government’s ability to adhere to expenditure control mechanisms imposed by the International Monetary Fund (IMF) program in the upcoming election year. He points out that historically, the government tends to engage in excessive spending during election years, raising concerns about its commitment to curtail spending and meet the demands of the IMF program, which aims to reset the Ghanaian economy.
Simmons highlights that the most significant challenge in implementing the IMF program will arise in the election year when Ghana heads to the polls. Past governments in Ghana have exhibited a tendency to ramp up spending significantly prior to elections, aiming to showcase their achievements to voters, even if the necessary funds are not readily available. This pattern poses a potential obstacle to effectively implementing the IMF program, as it requires fiscal discipline and adherence to expenditure targets.
Professor Godfred Bokpin, an economist and finance lecturer, echoes Simmons’ concerns, emphasizing that the government’s desire to spend during the 2024 elections may clash with the constraints imposed by the IMF program. He suggests that the government may face a difficult choice between abandoning the program or compromising its electoral agenda. Bokpin raises the question of how the IMF program will effectively restrain politicians from engaging in excessive spending during the upcoming elections.
These apprehensions voiced by both Simmons and Bokpin underscore the delicate balance Ghana must strike between political considerations and the requirements of the IMF program. While the program is designed to address economic challenges and promote sustainable growth, election years often present a unique set of circumstances that can potentially derail fiscal discipline and overshadow the program’s objectives.
The ability of the government to navigate this challenge will be closely watched by analysts, economists, and stakeholders within Ghana and abroad. It will be essential for the government to demonstrate its commitment to sound economic management, responsible governance, and the long-term interests of the Ghanaian population. Balancing political imperatives with the demands of the IMF program will be a critical test of Ghana’s economic resilience and its ability to achieve meaningful reforms in the face of electoral pressures.
As the election year approaches, observers will closely monitor the government’s actions and decisions. The government’s ability to resist the temptation of excessive spending and adhere to the expenditure control mechanisms imposed by the IMF program will be pivotal in maintaining investor confidence, sustaining economic stability, and ensuring the successful implementation of the program’s objectives.
