IMF urges gov’t to give greater priority to rebuilding fiscal buffers

The Director of Fiscal Affairs at the International Monetary Fund (IMF), Vitor Gaspar has said that abrupt changes in financial conditions call for fiscal restraint to tackle financial vulnerabilities.

He said the government would need to give greater priority to rebuilding fiscal buffers.

They can do this by developing credible risk-based fiscal frameworks that promote growth, Mr. Gasper said while launching the Fiscal Outlook Report released at the Annual IMF/World Bank Spring Meetings in Washington DC USA.

He also advised the government of Ghana to ensure that fiscal policy is consistent with monetary policy to restore price and financial stability, while supporting the most vulnerable.

“Abrupt changes in financial conditions also call for fiscal restraint to tackle fiscal vulnerabilities. To that end, governments will need to give greater priority to rebuilding fiscal buffers by developing credible risk-based fiscal frameworks that promote”, Mr. Gasper said.

Meanwhile, Ghana’s Ministry of Finance has said that the sector Minister Ken Ofori-Atta had very productive meetings so far at the #SpringMeeting2023 with the IMF, International Finance Corporation (IFC) and Japan International Cooperation Agency (JICA), among others.

“Grateful for the strong cooperation from our bilateral and multilateral partners!” the Office of the Finance Minister tweeted on Wednesday, April 12.

The 2023 Spring Meetings of the Fund and the World Bank Group commenced on Monday, April 10, and are expected to end on Sunday, April 16.

The theme for the programme of events is “Reshaping Development for a New Era”.

At the heart of the meetings is a discussion around the progress of the institutions.

The meetings bring together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.