Pursue significant budgetary changes – Gov’t urged

Mr. Seth Terkper, a former Finance Minister, has recommended government to use the mid-year budget to aggressively pursue fiscal reforms that will boost private sector investment in the country.

Mr. Terkper warned that the business community’s confidence is dwindling as a result of high taxation.

Speaking during an interview, the former finance minister in the Mahama administration disclosed that the IMF agreement provides the government with an opportunity to rebuild corporate confidence in the mid-year budget.

He stated that the government cannot continue to squander public resources.

“In 2020 and 2021, we have had all the significant flows into the economy and yet we couldn’t turn things around” said Mr. Seth Terkper.

The former finance minister communicated that the IMF agreement gives an ideal chance to pursue changes that will stabilize the economy and ensure a quick recovery.

“I hope that this is an opportunity to do real reforms. The fund has started making adjustments. There are contingency plans for us. They have made an adjustment to bring us out of the woodworks”.

Mr. Terkper stated that the rapid adjustment and emergency measures taken by the Fund indicates a positive signal that must be used to get the economy back on track.

He added that there is the need to target the fiscal deficit and the debt stock to create some space for economic development, adding that “the reforms that the administration would undertake will also help the country in following evaluations to expedite the disbursement of the remaining monies under the program.”

“The success will depend on real performance. The Fund will be very alert. Don’t forget the IMF money because the money we are receiving is a loan.”

Reduction of Salary

As part of the reforms, government has disclosed its plans to reduce compensation of public sector employees by 0.5 percent of GDP.

According to the government, it is undertaking what it describes as wage moderation to achieve the target.

This was contained in the Ghana 3-year programme with the International Monetary Fund to achieve fiscal discipline and return the country back to economic growth.

The document also says wages of public sector workers will be calibrated to ensure a balance between burden sharing, productivity, and capacity to pay.