He said this is due to the successful completion of the $3 billion bailout secured from the International Monetary Fund (IMF).
President Nana Addo Dankwa Akufo-Addo has disclosed plans to return to the international market to borrow to fund infrastructural projects.
President Nana Addo Dankwa Akufo-Addo
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Speaking at the Qatar-Africa Economic Forum in Doha, Mr. Akufo-Addo said even though his government is in no rush to return to the international market, it makes sense to take advantage of the market now and make some savings.
“We have positioned ourselves to be able to go back into the International market which had been a source of funding for us during the first three or four years of our government,” the president said, adding, “There is no rush but obviously why not take advantage of global savings, it makes a lot of sense to me. We will try as much as possible to maintain the discipline which is required and the most important requisite for a successful programme.”
President Akufo-Addo also said his government will embark on rigorous expenditure cuts and revenue mobilisation exercises.
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According to him, this is necessary to limit waste in the management of the country’s resources.
“Rationalisation of our expenditure, rationalisation of government expenditure is something that we have given the assurance. Domestic revenue mobilisation is absolutely critical for us and already we are seeing signs.
“We have a fiscal responsibility law in Ghana that has pegged our fiscal deficit at 5 percent but already we are way above that and the sooner we can bring that to more acceptable levels the better for us.”
Ghana has currently been shut out of the international capital market due to its highly unsustainable debt levels.
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The Finance Minister, Ken Ofori-Atta had earlier emphasized Ghana’s commitment to fiscal responsibility, stating that Ghana will not hastily seek to return to the international capital market for borrowing.
Speaking at a press conference on Thursday (May 18), Ofori-Atta highlighted the importance of revenue measures and prudent expenditure management in ensuring financial stability and sustainability.
He further acknowledged the revenue-enhancing measures outlined in the budget, particularly improvements at the Ghana Revenue Authority (GRA), which are expected to provide the necessary resources for the country’s progress.
