Ghanaian consumers will have to brace themselves for tougher times in the coming months and next year as they are expected to pay more for utilities and transport while experiencing increased hardship in living conditions.
Businesses will also have to pay more for fuel, tariffs and other taxes.
Tariffs such as water and electricity are expected to go up while it is uncertain whether the erratic power crisis popularly called �dumsor� which has had devastating blow on industry will end any time soon.
The Center for Policy Analysis (CEPA) has already warned government to desist from excessive borrowing and also restore fiscal balance to prevent any collapse of the Ghanaian economy.
Private sector bodies such as the Association of Ghana Industries (AGI) have consistently expressed worry about the weak macroeconomic fundamentals such as interest rates and exchange rate, having sharp implication on workers disposable incomes, living conditions and ultimately rendering several businesses partially effective or ineffective.
The board of the International Monetary Fund (IMF) on Monday indicated its readiness to strictly monitor and check government spending during the election year, 2016 following its approval of the disbursement of the second tranche of $114 million to the Ghanaian economy.
The Bretton Woods institution came to the aid of the government early this year following some instability in the fiscal economy which spread to the monetary economy, fuelling high inflation and interest rates as well as rapid depreciation of the local currency-the cedi.
Its concern is to ensure the turnaround of a stubborn economy despite many interventions.
The presence of the IMF has led to significant reduction in government subsidies such as water and electricity to consumers while a partially deregulation of the petroleum sector done every fortnight is existence though the government has denied that the move is due to pressure from the IMF.
Also, the Electricity Company of Ghana (ECG) and the Ghana Water Company on Monday August 31, 2015 at a forum in the Eastern region together called for almost 100% increase in electricity and water bills.
While the ECG is asking that tariff should be increased from 44 pesewas to 1 cedi per unit, the Ghana Water Company wants price increment from GH�1.70 to 4 cedis per five barrels.
Though the Public Utilities and Regulatory Commission (PURC) has not ruled out an imminent increase in the tariffs, it says the meeting is one of several to solicit consumers input into a possible adjustment in the tariffs.
The increase in the tariffs which the utilities providers are calling for it to start on October 1, 2015 will worsen the living conditions of Ghanaians.
More taxes are also expected to be imposed on businesses and Ghanaians as government finds means of increasing more revenue to bridge the fiscal deficit which from all indications will be missed.
Already, taxes on pharmaceutical products amount to almost 40%. They include 10 per cent import duty, 17.5 per cent Value Added Tax (VAT) & National Health Insurance Levy (NHIL), 0.5per cent Economic Community of West African States (ECOWAS) levy, 0.5% network charges, 1per cent inspection fee, 1per cent Internal Revenue Service (IRS) tax, Export Development and Agricultural Investment Fund (EDAIF) levy of 0.5per cent, Social Investment Levy (SIL) 2 per cent, and interest charges of 2 per cent.
This has sharply increased prices of pharmaceutical products by almost 70 percent as checks by Business Finder suggest.
Astute economist, Dr. Joe Abbey said there are too many large imbalances in the Ghanaian economy which when not checked will create many problems in the long term. �If you have these twin deficits of imbalances on the merchandise trade account and fiscal side then you are pronged to be highly indebted and still poor.�
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