President Nana Addo Dankwa Akufo-Addo has announced his government’s plans to borrow from the international market to fund infrastructural projects in Ghana.
This comes after Ghana completed its $3 billion deal with the International Monetary Fund (IMF) successfully.
Speaking at the Qatar-Africa Economic Forum in Doha, the President highlighted that his government was not in haste to return to the international market.
However, the current market conditions present a chance to take advantage of global 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.
He also emphasized the essence of maintaining fiscal discipline, which is required for a successful program.
The Finance Minister, Ken Ofori-Atta, had earlier reiterated Ghana’s commitment to fiscal responsibility, stating that the country will not hastily seek to return to the international capital market for borrowing.
Finance Minister, Ken Ofori-Atta, also emphasized the importance of revenue measures and judicious expenditure management in ensuring financial stability and sustainability during a press conference on May 18th.
He 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.
“Our expectation is that, by managing our expenditure and increasing our revenue, we will have the resources to address our needs,” he said.
In addition, President Akufo-Addo has revealed that the government will begin diligent expenditure cuts to meet the conditionalities of the International Monetary Fund (IMF).
He expressed confidence that the IMF bailout will help boost the Ghanaian economy and that the rationalization of government expenditure is something that they have given assurance of.
“Domestic revenue mobilization is absolutely critical for us, and already we are seeing signs,” he said. The government is eager to turn the fortunes of the country around and will do everything possible to ensure that the ailing economy is revived.
Adding up, Finance Minister, Ken Ofori-Atta, also emphasized the importance of adhering to Ghana’s fiscal responsibility law, which sets a fiscal deficit limit of 5 percent.
He noted that the country is currently above this limit and therefore needs to take steps to bring it down to more acceptable levels.
This is crucial in ensuring financial stability and sustainability for Ghana.
By managing expenditures and increasing revenue, the government aims to address the country’s needs without returning to the international capital market for borrowing.
President Akufo-Addo has expressed confidence in the IMF bailout and is committed to implementing the necessary measures to revive the ailing economy.
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Source: Comfort Sweety Hayford/ATLFMNEWS
