The International Monetary Fund (IMF) says Ghana is on track with its programme with the Fund aimed at stabilizing the economy.
Speaking at a press conference, Mr Min Zhu, the Deputy Managing Director of the IMF, said there was strong commitment from government to ensure the programme’s targets were achieved.
“After our second review which ended about two weeks ago, we have seen that Ghana is on track regarding its programme with the Fund.
“We welcome the strong commitment of the government and its determination to manage debts and bring down the fiscal deficit,” Mr Zhu told the media.
Mr Zhu, who was on a two-day official visit to Ghana, held discussions with the private sector, civil society organisations, President John Dramani Mahama, Vice-President Kwesi Amissah-Arthur, as well as the economic management team.
He said ensuring fiscal consolidation was key as the high debt to GDP ratio of about 70 per cent was stifling growth and leading to high interest rates and inflation, adding that dealing with the fiscal deficit and the high debt level would stimulate economic activities.
“The debt is at the core of the matter. So fiscal discipline and consolidation are important. If we are able to bring down the debt, we will have the other indicators coming down. We have to do this now so that the private sector can benefit next year,” Mr Zhu said.
He said more fiscal consolidation would be needed to sustain the gains and to reduce the debt adding that the Fund would work closely with the Ghanaian authorities to achieve that.
“We need a further consolidation of the fiscal policy and we needed to ensure that we have primary surplus of about 2 percent this year so that we will be able to maintain the debt deficit.
“By doing that we need fiscal consolidation, we need fiscal sector reforms, we need the improved and enhanced tax administrations plus efficiencies, we need eliminating tax exemptions and improve the public expenditure quality.”
Mr Zhu expressed happiness with government’s commitment and determination to keep the lid on fiscal deficit even in an election year.
Source: GNA
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