Enhanced Domestic Economic Programme ready for IMF negotiations – Dep. Fin. Minister
Ghana’s Enhanced Domestic Economic Programme, according to Deputy Minister of Finance, Dr. John Kumah, is ready for negotiations with the IMF.
Making the disclosure on the PM EXPRESS Business Edition, the Deputy Minister of Finance noted, the Ministry is now doing what can best be described as targeted stakeholder engagement to get the “buy in” of all the “relevant actors” in the economic space .
“This engagement is being done just like what we do before budget presentations” he said, rejecting arguments that the engagement should have been structured like the Senchi consensus format.
The Enhanced Domestic Programme (EDP) is a 3-year fast-tracked macroeconomic stabilization programme that seeks to restore policy credibility and achieve fiscal and debt sustainability.
The programme is heavily driven by a mix of robust structural reforms and revenue, expenditure, and financing policies.
The Enhanced Domestic Economic Programme seeks to achieve the following objectives:
- Improve the credibility of government policy and restore investor confidence in the economy, thereby, regaining market access, boosting DP disbursements, and unlocking other financing sources;
- Restore debt sustainability and macroeconomic stability to support green growth, economic transformation and job creation while protecting social spending;
- Strengthen the Central Bank’s Monetary Policy Regime; and build buffers to strengthen resilience to economic shocks
The Deputy Minister of Finance also rejected arguments that government is dragging its feet when it comes to reaching an agreement with the IMF because of the expected tough conditions.
“There has been serious engagement with the IMF over the past month and there is no way anyone can argue that we are not committed to reaching a deal soon with the IMF.”
“The Minister of Finance, Mr. Ken Ofori-Atta, during his recent visit to the USA, met with the Managing Director of the IMF on some issues concerning Ghana’s programme with the Fund.
“President Akufo Addo during his recent trip to Netherlands, met with the Managing Director of the IMF for some engagements. During that meeting, the President did affirm his commitment to the programme,” the Deputy Minister added.
Dr. Kumah also revealed that there has been some engagements via video conferencing as well as the recent visit by the new Mission Chief to Ghana.
“You cannot look at all these developments and conclude that Ghana is not committed to and IMF Programme,” the Deputy Minister of Finance stressed.
The Deputy Minister of Finance also confirmed that government has started taking steps to restructure the country’s debt stock. He was however tight-lipped on the approach or the format being used to deal with the situation.
He added that as a government, “we are committed to taking those though measures to deal with the current challenges facing the economy.”
The move, sources say has been influenced by proposals from the IMF for government to submit a plan on how it intends to deal with the debt situation as one of the pre-conditions before negotiations for the Fund programme starts in the last week of September.
On revenue mobilization, the Deputy Minister of Finance noted that Government is taking steps to ensure that it meets the end of year target as announced in the 2022 budget. According to governments’ 2022 budget, the country is hoping to mobilise GHC100.5 billion by the end of this year.
This was however revised downward in the Mid-Year review. However, its fiscal numbers for June this year showed that it has been able to secure GHC37 billion as against the target of GHC43 billion.
The Deputy Minister also announced that other measures being implemented, will improve the situation in the coming months. Dr. Kumah added that despite the recent concerns with the E-Levy, he is very optimistic that things will improve going forward.
