Ghana takes critical step towards IMF programme with passage of three revenue bills
Parliament has passed the three revenue bills aimed at generating GHC4 billion per year to supplement domestic revenue and restore economic stability and growth.
The bills, which include the Income Tax (Amendment) Bill, the Excise Duty and Excise Tax Stamp (Amendment) Bill, and the Growth and Sustainability Levy Bill, were given the green light after a majority decision of 137 – 136 on Friday 31 March 2023. The government hopes that the passage of these bills will provide a significant reduction of debt service and create fiscal space.
The passage of these revenue bills is seen as a critical step in fulfilling the prior actions agreed upon in the Staff-Level-Agreement with the International Monetary Fund (IMF). The agreement is aimed at easing Ghana’s current economic difficulties and setting the economy on the path of recovery, including sustained growth and disinflation. The Governor of the Bank of Ghana, Dr Ernest Addison, has noted that the bills will conclude the prior actions required in the agreement and pave the way for Ghana’s $3 billion programme to the IMF executive board.
“The passage of the relevant revenue bills by Parliament will therefore conclude the required prior actions to advance Ghana’s programme to the IMF Executive Board. This will be critical in resetting the economy on the path of recovery, including putting it firmly on a disinflation path and sustained growth,” noted the MPC press release signed by Dr Addison on Monday, March 27.
The domestic debt exchange, new revenue measures, and structural fiscal reforms embarked on by the government will provide significant reduction of debt service and help create fiscal space.
Ghana’s passage of the three revenue bills is a positive development for the country’s economy. The bills will provide significant reductions in debt service and create fiscal space, enabling the country to address its economic difficulties and restore stability and growth. The swift passage of the bills is also critical to advance Ghana’s programme to the IMF Executive Board and set the economy on the path of recovery.
