Ghana’s Minister of Finance, Dr. Cassiel Ato Baah Forson, has announced that a team from the International Monetary Fund (IMF) will visit the country from February 10 to 14, 2025, to help align the 2025 national budget with the goals of the $3 billion Extended Credit Facility (ECF) program.
The program, which spans three years, aims to restore economic stability and fiscal balance in the country.
Speaking during a visit to the Ghana Revenue Authority (GRA) and the Controller and Accountant-General’s Department (CAGD) on January 23, Dr. Forson stated that the IMF’s upcoming visit would focus on reviewing the budget preparations in light of the ongoing loan-supported program. “The IMF will be in town on the 10th to the 14th of February for us to look at the budget preparation,” he said.
One of the key aspects of the IMF agreement is the need for Ghana to raise additional tax revenue equivalent to 0.6% of its Gross Domestic Product (GDP) in the upcoming fiscal year. Dr. Forson has instructed the GRA to develop strategies to meet this target, underlining the importance of revenue mobilization to reduce the country’s fiscal deficit. “Look at better ways to ensure additional revenue is mobilized,” he urged GRA officials, also requesting projections for 2025 that could identify areas where adjustments might be necessary to achieve revenue targets.
At the CAGD, Dr. Forson emphasized the need for strict oversight of government spending, in line with the Public Financial Management Act of 2016. He stressed that expenditure should focus on projects that drive inclusive growth and economic transformation. “Your work is to ensure that whatever we ask you to pay, you review it, and if it meets your law, you pay,” he told CAGD staff, adding that the Ministry of Finance would continue to prioritize quality expenditure aimed at transforming the nation.
Debt sustainability has also become a central issue for the government. Ghana’s total debt stood at a staggering GHS742 billion as of June 2024, with external debt making up over half of the total. Dr. Forson acknowledged the ongoing challenges but assured that under the IMF program, reforms are being implemented to restore debt sustainability. Fiifi Fiavi Kwetey, General Secretary of the National Democratic Congress (NDC) and a former Deputy Minister of Finance, joined Dr. Forson on the visit. He noted that the country’s economic difficulties stem from the gap between government revenue and expenditure. “As you are aware, we already have massive issues in debt, and that’s always coming up because of the dislocation between how much we are earning and how much we are spending,” Kwetey remarked, emphasizing the urgency of tackling these issues to stimulate economic recovery.
Meanwhile, the Director-General of the CAGD, Kwasi Adjei, assured Dr. Forson that the department remains committed to improving the country’s financial systems. He highlighted the importance of thoroughly analyzing expenditure and ensuring accountability in all government transactions. “We will play our part as a department and make sure that transaction releases are made, subject to our analysis, and do that part with payment,” Mr. Adjei said.
The collaboration between the Finance Ministry, the IMF, and other key stakeholders is set to play a critical role in charting a course for Ghana’s economic recovery. Dr. Forson’s focus on revenue mobilization, fiscal discipline, and transformative expenditure reflects the government’s commitment to addressing the country’s pressing economic challenges. With the IMF team’s visit on the horizon, the government is poised to ensure that the 2025 budget is aligned with broader fiscal sustainability goals, paving the way for a more resilient and stable economy in the future.
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