Economist Highlights Positive Impact of IMF on Ghana’s Fiscal Discipline
Economist and Political Risk Analyst, Dr. Theo Acheampong has acknowledged the government’s clear commitment in the mid-year budget review to curtail spending, driven by the constraints of the International Monetary Fund (IMF) programme.
Speaking on Joy News’ PM Express, Dr. Acheampong observed that the IMF’s influence has significantly restrained government expenditure, particularly noteworthy given the approaching election.
“Without the IMF’s oversight, especially in an election year, the government would likely be on a spending spree. This restraint is a positive development,” he remarked.
Dr. Acheampong underscored the relative stabilisation on the macroeconomic front, citing several indicators that suggest a sustained recovery. However, he stressed the necessity for this recovery to permeate micro-level issues, such as the cost of living.
The mid-year budget and the forthcoming November budget are designed to pivot the economy towards growth, with an emphasis on infrastructure and enhanced revenue collection.
“There’s discussion around road infrastructure, potentially reintroducing road tolls, and a significant focus on housing,” he noted. “Overall, the outlook is relatively positive. Unlike previous budgets, the government is not seeking additional funds, and expenditure remains within the established parameters.”
Last month, the IMF’s executive board sanctioned the second review of Ghana’s $3 billion loan programme, facilitating the immediate disbursement of approximately $360 million.
This followed Ghana’s accord with its official creditor committee, a prerequisite for releasing the second tranche. The cumulative IMF disbursements under the three-year bailout programme now stand at $1.56 billion.
The IMF lauded Ghana’s performance under the programme as generally robust, with evident signs of stabilisation.
“The authorities’ strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities is bearing fruit,” stated IMF Deputy Managing Director Kenji Okamu.
