Run to IMF, economy heading towards collapse – Gov’t told

Dr. Casiel Ato Forson, Member of Parliament for Ajuamoko Enyan Essiam and a former Deputy Minister of Finance, has berated the Nana Akufo-Addo’s government for running down the economy.

He thus, urged the government to as a matter of urgency, go to the International Monetary Fund (IMF) for support.

The Ajuamoko Enyan Essiam lawmaker warned that Ghana’s economy under the Akufo-Addo administration is “heading to a collapse”, hence the government must act fast to save the situation.

Dr Ato Forson further accused the government of turning blind eye to the fact that the economy is on life support.

“This government does not seem to understand that the economy is in crisis. My concern is that, any day, any hour, and any moment that they delay, the impact on the economy gets worse to the extent that if care is not taken, our economy is heading towards a collapse.

“That is why I am urging the government to do what is right and doing what is right is to sign on to an IMF programme” he said.

Dr. Ato Forson, however, may not be alone in calling for the IMF support, as a former NPP Member of Parliament for New Juabeng South, Dr Mark Assibey-Yeboah also asked the government to abandon the E-levy proposal and go to the IMF for support because the economy is not in the best shape.

In making a case for Ghana to return to the IMF, Dr Assibey-Yeboah believed that a return would rescue Ghana’s struggling economy.

“Without a doubt, I think we should be placing a call to Washington [IMF] if we haven’t really done that. We are just not going to ask for the funds just because E-levy has been passed or not. E-levy will just bring about GH¢5 billion. We are in a deep hole with our tax revenue and facing difficulties. So, going to the Fund will give us some support.

“So, there is nothing wrong with going to the Fund.  Ghana is a member of the IMF, so what is wrong going to ask for support when we are in difficulties? If I was the finance minister, I will be convincing the President that it is about time we went back.”

Government Revenue Target Not Achievable

Dr Assibey-Yeboah further cast doubt on the government’s ability to raise the projected GH¢6.9 billion target, saying the maximum the government can raise from the controversial e-levy is GH¢5 billion.

“The GH¢6.9 billion target cannot be realized. There are a lot of exemptions. So, in my estimation, the maximum amount we can get from the E-levy is GH¢5 billion, and that is less than a billion dollars. So, I do not think that the E-levy is going to be a panacea to our revenues. Going to the IMF will ensure some stability and above all, we are going to get some $3 billion” Dr Assibey-Yeboah

However, the Communications Director of the governing New Patriotic Party (NPP), Yaw Buaben Asamoah, disagreed with the idea of going to the IMF, noting that when the National Democratic Congress (NDC) went to the IMF in 2015, the then government was given 913 million dollars to support the economy.

Mr. Buben Asamoah is of the view that the proposed E-levy in the 2022 budget if passed, will generate over a billion dollars to the government, hence there will be no need to stampede the Bretton Woods institution for support.

“That is [Assibey-Yeboah’s] opinion, he is entitled to it, but I will disagree with him. When the NDC went to the IMF in 2015, the 16th time we were going to the IMF, they were given 913 million dollars. The performance base was cut spending, cut waste. These are the performance indicators. Over three years 913 million dollars, less than a billion dollars. E-levy can raise a billion dollars”.