The International Monetary Fund (IMF) has welcomed what it said are important measures Ghana has employed in the 2015 budget to reduce the fiscal deficit and properly manage government’s finances among others.
This was contained in a statement the IMF released on Friday after discussions on a financial assistance programme for Ghana.
[contextly_sidebar id=”snKf8DJwIVuq9tLoxq1xbZ8nIuaFTJfr”]The IMF said it particularly welcomes plans by government to reduce the budget deficit by about 3.5% of GDP.
According to the IMF the 2015 budget includes some “important measures to increase revenues, to eliminate distortive and inefficient energy subsidies, and to contain growth in Ghana’s comparatively high public wage bill.”
The last time the IMF was in Ghana over the bailout programme, it warned that the final bailout programme will target the elimination of fuel subsidies and structural reforms which will include pragmatic ways of increasing tax revenues for the country.
Government has imposed a 17.5% tax Value Added Tax (VAT) on petroleum products even though it says this will only mean a 3% increase in petrol at the pump.
The IMF team, led by Toujas-Bernaté noted that efforts to clean up the government’s payroll and enhance its management have been initiated and “should be pursued swiftly.”
The Fund was optimistic that these efforts, together with the implementation of appropriate pay and hiring policies, “will help further control the wage bill, which has been a significant source of fiscal risk.”
Speaking on the progress made so far with the bailout programme for Ghana, the IMF said it has “made significant progress in a third round of talks”
The Fund added that it will “work with Ghana on a series of concrete steps in the coming weeks, including cleaning up the public sector payroll and finalising details of medium-term reforms, and will then agree an assistance programme.”
By: Nana Boakye-Yiadom/citifmonline.com/Ghana