President John Dramani Mahama reaffirmed Ghana’s commitment to its IMF program, emphasizing the need for tax reforms and responsible financial management. He outlined the issues of excessive taxation from the previous administration and the necessity for a more efficient tax structure. Discussions with the IMF have been productive, with a focus on reducing waste and addressing significant debt repayments while leaving options open for additional program support.
President John Dramani Mahama has underscored his government’s determination to advance Ghana’s economic recovery with the International Monetary Fund (IMF), advocating for critical tax reforms and efficient fiscal management. Speaking at the Munich Security Conference on February 14, he pinpointed essential issues like tax rationalization, expenditure oversight, and the necessity for debt restructuring.
During an update on Ghana’s dialogue with the IMF, Mahama remarked on the recent staff visit, indicating fruitful discussions with the Ministry of Finance. He acknowledged some topics that were overlooked during the prior agreement discussions, emphasizing the importance of tax rationalization to improve revenue streams.
Highlighting past missteps, Mahama criticized the previous government’s approach of imposing excessive taxes, which inadvertently decreased revenue generation. He called for a clearer and more efficient tax framework to bolster compliance and increase revenue effectively.
Assuring the public of ongoing productive talks with the IMF, Mahama revealed the organization’s commitment to providing technical support for necessary tax reforms. He also discussed the government’s aim to minimize wasteful expenditures while reallocating funds to priority initiatives.
On the topic of Ghana’s debt restructuring, he recognized the substantial obligation of over GHS 15 billion in domestic exchange repayments this year. To mitigate this burden, the government has revived a sinking fund designed to manage these repayments and alleviate fiscal stress.
In terms of the IMF program’s timeline, Mahama clarified that there have been no discussions regarding an extension of the current program, ending in May 2026. He expressed dedication to maintaining the program but remained open to the possibility of additional support if required, stating, “We are determined to continue with this program… But if it is necessary to look at additional funds or extend the program, we’ll look at it.”
Mahama’s statements at the Munich Security Conference lay a solid foundation for Ghana’s economic recovery strategy in collaboration with the IMF, focusing on essential reforms in tax structure, improved financial management, and addressing debt challenges. His commitment to efficiency, transparency, and potential adjustments at the IMF’s request highlight the government’s proactive stance in navigating economic recovery while ensuring fiscal responsibility.
Original Source: www.ghanaweb.com
