Deputy Information Minister Pius Enam Hadzide who disclosed this at a media briefing in Accra yesterday said the visit marks an appreciation of Ghana’s solid economic fundamentals and overall policy direction.
“It is our hope that the visit of the IMF boss will further strengthen the cordial relationship between Ghana and the IMF on economic policies.
“Our fiscal rules ensure irreversibility signal to the world that Ghana is ready for investments. Aside from showing the world that doing business with us is a move in the right direction, the visit of Madam Lagarde has the potential to unlock for us as a nation, good coupon rates on the international bonds market,” Mr. Hadzide added.
The erstwhile National Democratic Congress (NDC) administration led by John Dramani Mahama ran to the IMF for an Extended Credit Facility programme of US$918 million and for policy credibility after it mismanaged the Ghanaian economy.
The Akufo-Addo administration had to extend the facility after assuming office because the previous government failed to meet the targets set for the country under the programme.
This was as a result of fiscal indiscipline in the management of public funds by the Mahama administration.
The last administration spent far above its budget in 2016 after it experienced a similar budget overrun in the 2012 election year.
Total projected expenditure for 2016 was GH¢43.9 billion (26 % of GDP), but actual expenditure amounted to GH¢50.3 billion (30.2% of GDP).
The total revenue target for the year was GH¢37.9 billion (22.7% of GDP), but the actual revenue received was GH¢33.2 billion (19.9% of GDP).
Budget deficit increased
The combination of higher expenditure and lower revenues than projected resulted in a significant increase in the budget deficit for 2016.
Compared to a target of 5.3% under the IMF programme, the Mahama administration recorded a fiscal deficit 9% of GDP on cash basis and 10.2% of GDP on commitment basis (that was on the basis of expenditure undertaken but not yet paid for).
Barely two years in office, the Akufo-Addo administration has transformed the economy and has achieved all the targets.
It is now on course to ending the programme by the end of the year.
The visit of the IMF Chief is expected to herald Ghana’s exit of the Fund’s programme.
Giving the itinerary of Madam Lagarde, Deputy Information Minister Pius Hadzide indicated that the IMF boss will on Monday December 17; participate in the “Future of Work in sub-Saharan Africa Conference” in Accra.
The one-day conference is an opportunity for the IMF head to engage with economic managers and other stakeholders in sub-Saharan Africa.
The objective of the conference it to generate a debate on the future of work in sub-Saharan Africa and the policies required to create jobs for the continent’s growing population as well as how the region can manage and leverage the impact of technological change, demographics, climate change, and the course of globalization.
The IMF Managing Director will on the same day hold bilateral talks with President Nana Akufo-Addo at the Jubilee House.
She is also expected to have lunch with some Ghanaian women entrepreneurs who are doing well in their field of work.
Mr. Hadzide also revealed that on Tuesday December 18, the IMF Chief will give a key note address at a forum in Accra to be attended by government agencies, central bank, private sector, think tanks, civil society, NGOs and academia.
Madam Lagarde will depart from Accra same day to Johannesburg South Africa on a four Africa Nation tour.
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Source: The Custodian
