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Former Finance Minister Seth Terkper in the erstwhile John Mahama administration has slammed the Akufo-Addo administration for trying to blame the already deteriorating economy on the COVID-19 pandemic.

“I am not downplaying COVID-19. I need to be very clear on this, but I am saying that a lot was happening already [to the economy].”

Speaking on Citi TVs The Point of View, Mr. Seth Terkper charged the Finance Minister to use the mid-year budget which will take place on Thursday July 23, 2020 in Parliament to come clean on the distinct stresses on the economy.

The Akufo-Addo government through the Finance Minister Ken Ofori Atta has indicated that the pandemic would cost the state over GHS 9 billion but the former Finance Minister in his submission, held the view that this would account for 2 out of about 10 percent of Ghana’s budget deficit.

The International Monetary Fund had predicted that Ghana’s budget deficit would be above 7 percent in December 2019. The estimate went up by 2 percent in March 2020.

The former Finance Minister noted the recent financial support like the $1 billion IMF Rapid Credit Facility to mitigate the impact of the COVID-19 pandemic on Ghana’s economy as contributing to the deficit.

Mr. Seth Terkper however claimed that the $1 billion IMF Rapid Credit Facility to the Akufo-Addo government is rather a return to the IMF in spite of the government’s assertions that it had moved beyond the IMF.

U-turn on relationship with IMF

He chose to call the move of the Akufo-Addo government to solicit IMF support in aid of distressing the economy as a result of the pandemic too quick given the claims that the economy was being well managed.

“Why did we make a U-turn after we exited the IMF. Exit means that you won’t go to the IMF for a programme. We went to the IMF in March, very early into COVID.”

“The question we should ask is why didn’t other African countries rush to go to the IMF in March and April? According to the government, we had a stronger economy than other African countries and we were comparing ourselves.”

He thus feels the government is primed to use the pandemic as an excuse “to cover the deficit”

“…The gap which I am talking about from Article IV [IMF assessment in December 2019] is as a result of the adjustments which you are talking about.”

“If you are going to say the deficit is 10 percet or 9 percent, don’t say it is all on account of COVID,” Mr. Terkper said.