The International Monetary Fund (IMF) has justified the adoption of three mobilization measures as well as the increase in utility costs as Ghana attempts to fix its balance of payment problems.
Despite criticisms, the Excise Duty, Growth and Sustainability, and Income Tax Amendment laws aim to generate GH¢4 billion for the country each year.
These, along with the expected tariff increases in June, are deemed crucial components of the country’s US$ 3 billion, three-year Extended Credit Facility with the IMF.
Dr. Leandro Medina, IMF Resident Representative in Ghana has been arguing in favour of adjustments in the face of other tough economic conditions.
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“The revenue measures that have been passed between December and April are part of the prior actions. It’s very important to mobilize revenue. Revenue to GDP in Ghana is very low as compared to other countries. Ghana is making a huge effort to increase revenue, and this will be done mainly by increasing the tax base. What is important to say is that this is a large and front load fiscal consolidation”, he said on the Point of View on Citi TV.
Ghana’s international reserves up to $5.7bn after IMF deal
Meanwhile, the country’s gross international reserves have increased to US$5.7 billion after sealing the US$ 3 billion deal with the International Monetary Fund.
These are highlights from data made available by the Bank of Ghana.
“With the approval of the IMF-supported programme and receipt of the first tranche of the disbursement, the gross international reserves have increased to $5.7 billion as of Friday 19 May 2023 equivalent to 2.6 months of import cover”, Governor of the BoG, Dr. Ernest Addison said on Monday during the Monetary Policy Committee Press Conference.
