The Ministry of Finance has said that the International Monetary Fund (IMF) program would not impede the execution of the Free Senior High School Programme and other programs such as Agenda 111.
The Ministry said in a paper that IMF programs are adaptable to changing conditions.
Ultimately, it was said that the IMF urges countries to safeguard the poor or vulnerable populations from the effects of fiscal adjustment while designing their programs.
“Free SHS, the School Feeding programme, among others are good social intervention programmes and it is the lack of financing and unsustainable debt burdens that could constrain a government’s ability to maintain its level of spending, including social or investment spending.
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“In our situation, the IMF may ask Ghana to consider curtailing lower priority or non-productive spending (such as “white elephant” projects) as part of its fiscal adjustment but to preserve priority social spending, including on health and education.
“The objectives are typically aimed at providing a social safety net for the poor and ensuring that investment spending boosts the economy at a critical time. However, Government in its Enhanced Domestic Programme has started a review of these programmes to see
how best they can be optimized and become more efficient.”
On Wednesday, July 6, the IMF staff team, headed by Carlo Sdralevich, mission leader for Ghana, is scheduled to conduct its first discussion with Ghanaian officials about a potential IMF-supported program.
The Ghanaian government declared its intention to seek financing from the IMF on July 1.
This followed a telephone call between the President and the Managing Director of the IMF, Miss Kristalina Georgieva, in which the President conveyed Ghana’s resolve to engage with the Fund, according to a statement issued by the Ministry of Information.
On Tuesday, July 5, the IMF delegation headed by Mr. Sdralevich arrived in the country.
In a statement Mr. Sdralevich said “On the basis of a request from the Ghanaian authorities, an IMF staff team will in the coming days kick-start discussions on a possible program to support Ghana’s homegrown economic policies. We are at an early stage in the process, given that detailed discussions are yet to take place.”
“The IMF stands ready to assist Ghana to restore macroeconomic stability, safeguard debt sustainability, and promote inclusive and sustainable growth, and address the impact of the war in Ukraine and the lingering pandemic.”
The Fund said that it is looking forward to engaging with the authorities in Accra.
SOURCE: 3NEWS
