Government says in order to restore and sustain debt sustainability, it plans to cut the country’s total public debt to GDP ratio to some fifty-five percent (55%) in present value terms by 2028.
This decision according to President Akufo Addo was taken at the just-ended Cabinet Retreat at Peduase Lodge where government is said to have taken some firm decisions that should help the nation out of the current economic difficulties.
“At the just-ended Cabinet Retreat at Peduase Lodge, my government agreed on the framework for the Post COVID-19 Programme for Economic Growth and the IMF support for its implementation, as well as the work being done by the Ministry of Finance in preparation for the 2023 budget. At the Cabinet Retreat, we took some firm decisions that should put us on the path that will take our nation out of the current economic difficulties.” The president said when he addressed the nation on the state of the economy on Sunday evening.
He indicated that restoring and sustaining the debt sustainability will be with the servicing of the country’s external debt pegged at not more than eighteen percent (18%) of the annual revenue also by 2028.
The president added saying government is also committed to enhancing the revenue collection effort, from the current thirteen (13%) tax-revenue of GDP ratio to between eighteen and twenty percent (18-20%).
He said this will help Ghana compete with its peers in the West Africa Region.
He thus appealed to Ghanaians to support the Ghana Revenue Authority to ensure the success of the exercise.
“The GRA is rolling out an extensive set of measures to support this enhanced revenue mobilization. All of us must do our patriotic duty, and support the GRA in this exercise.”
According to the president, the aim to restore and sustain macroeconomic stability within the next three (3) to six (6) years, is with a focus on ensuring debt sustainability to promote durable and inclusive growth while protecting the poor.
He, therefore, said government has decided to among other things continue with the policy of a thirty percent (30%) cut in the salaries of political office holders including the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and SOE appointees in 2023.
They will also continue with the thirty percent (30%) cut in discretionary expenditures of Ministries, Departments, and Agencies.
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Source: Rosemond Asmah/ATLFMNEWS
