Seth Terkper last week said the economy has recovered following the implementation of the fiscal consolidation measures.
Seth Terkper last week said the economy has shown improvement following the implementation of the fiscal consolidation measures which has seen the budget deficit reduced to 7.3% from 12% in 2013.
He said:"The fiscal consolidation measures have ensured the reduction of our budget deficit. We had a deficit of nearly 12% in 2013 and that was what we were looking resolve. Now the deficit stands at 7.3%, a clear indication that fiscal consolidation measures are being successfu. We are now looking at a target of 4.5% and 5%."
On single spine and payroll issues, he said labour agitations have reduced drastically, as well as the burden of the wage bill on the budget.
On debt accumulation, he said the rate at which government is accumulating debt has decreased.
On budget deficit, he said government is targeting 4.5% and 5%.
“If the economy is rebounding our currency has to get stronger. Jobs have to be created. The cost of borrowing, interest rates have to come down. The cost of borrowing is still high up. The currency is still weak. So what has improved, which of these economic indicators has improved from a year ago or two years ago?” he said.
Mr. Zhu also said the IMF is expecting Ghana's economy to grow by 4 to 5 percent, during a recent visit to Ghana.
He said: “We expect to see that the government will cut the budget deficit by 2 percent and with all that we expect to put the economic growth at 4 to 5 percent.”
Ghana last month received $114.6 million dollars from the IMF after a review of its 3-year bailout program aimed at bolstering the economy.
He also urged government to avoid what he calls "frivolous spending," and also "stop borrowing and live within our means."