Pulse.com.gh logo
Go


Fiscal Policy IMF programme a “complete waste of time”: Finance Committee chair

The New Juaben South MP noted in a debate on the floor parliament during deliberations on President Nana Akufo-Addo’s State of Nation Address that all targets set under the IMF conditions were not met by the Mahama administration.

  • Published:
Mark Assibey Yeboah play

Mark Assibey Yeboah

The Chairman of Parliament’s Finance Committee Mark Assibey Yeboah has described Ghana’s deal with the International Monetary Fund (IMF) as a “complete waste of time.”

The New Juaben South MP noted in a debate on the floor parliament during deliberations on President Nana Akufo-Addo’s State of Nation Address that all targets set under the IMF programme were not met by the John Mahama administration.

Ghana signed onto the deal following fiscal slippages, and government quest for policy credibility two years ago.

"So why did we enter the IMF programme to start with? It has been a complete waste of time", the New Juaben South MP asked on the floor of Parliament,” he said.

“In 51 years of Ghana’s existence, the debt was Gh¢9.5 billion, now you have bequeathed this country in 8 years, you have moved this debt from Gh¢9.5 billion to Gh¢122 billion,” he added.

The IMF in its latest review of the aid package said Ghana's economy continues to face challenges despite exceeding the growth target of 3.3 percent.

The IMF added that inflation has been slower than expect while applauding the narrowing of the current account deficit to 6 ½ percent of GDP.

“Ghana’s economy continues to face challenges. While the estimated economic growth of 3.6% in 2016 exceeded our target of 3.3%, the decline in inflation has been slower than expected. The current account deficit narrowed to 6 ½ percent of GDP, contributing to a small buildup of foreign exchange reserves," the IMF said in a press stament.

According to IMF, Ghana's fiscal deficit deteriorated to an estimated 9 percent instead of the projected target of 5¼ percent of GDP.

It attributed the deterioration to poor oil and non-oil revenue performance and large expenditure overruns.

“In 2016, the overall fiscal deficit (on a cash basis) deteriorated to an estimated 9 percent of GDP, instead of declining to 5¼ percent of GDP as envisaged under the IMF-supported program. The large deviation was mainly due to poor oil and non-oil revenue performance and large expenditure overruns. As a result, the government debt-to GDP ratio increased further to close to 74 percent of GDP at end-2016."

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Breaking Otabil finally breaks silence on banking controversiesbullet
2 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
3 Banking Crises Sahel Sahara and Omni Bank become latest to mergebullet
4 Nana Appiah Mensah Menzgold boss apologises to BoG after Twitter rantbullet
5 Increment Fuel prices to go up again – IESbullet
6 Incompetence Otabil wasn't qualified to be Capital Bank Board...bullet
7 Bank Collapse Capital Bank Board misused GHC 610 million...bullet
8 Banking In Ghana Stranded customers of First Allied...bullet
9 Capital Bank Collapse Here are the roles of a...bullet
10 Collapsed Banks Here are the auditing firms for the 7...bullet

Top Videos

1 Former Capital Bank staff grills pork for survivalbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Money Alert Meet Africa's richest womanbullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Support Finance minister buys Kantanka carbullet
7 Plane Crash Starbow suspends operations following plane crashbullet
8 New Phones Nokia MWC 2018 Event in 5 minutesbullet
9 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
10 Video We are determined to move Ghana beyond aid - Bawumiabullet

Business