President John Dramani Mahama has reaffirmed his government’s commitment to maintaining Ghana’s economic recovery program with the International Monetary Fund (IMF), while stressing the need for tax reforms and prudent financial management.
Speaking at the Munich Security Conference in Germany on February 14, he highlighted key areas of concern, including tax rationalization, expenditure control, and debt restructuring.
Addressing Ghana’s ongoing engagements with the IMF, Mahama stated, “Happily, we have just had a staff visit, and our Ministry of Finance is engaging with that.
“There were a few issues we were not at the table when this agreement was drawn up. So, coming into government, there are a few issues that we thought we should raise with the IMF, including the issue of tax rationalization.”
He noted that the previous administration had imposed excessive taxes, which had counterproductively led to reduced revenue.
He emphasized the need for a more transparent and efficient tax structure to improve compliance and enhance revenue generation.
“Unfortunately, what the previous government had done was just to slap on more taxes. And we have gotten to a stage where the more taxes that were put on, the less revenue that came in,” he explained.
Mahama confirmed that discussions with the IMF have been productive, with the organization agreeing to provide technical assistance for tax reforms.
He also outlined the government’s focus on cutting wasteful spending and reallocating resources to priority programs.
On the issue of Ghana’s debt restructuring, he acknowledged the challenge of settling over GHS 15 billion in domestic exchange repayments this year. To address this, the government has reactivated the sinking fund, which will be used to manage repayments and ease fiscal pressure.
Regarding the duration of the IMF program, Mahama clarified that no discussions had taken place about extending the current program, which is set to end in May 2026. However, he left open the possibility of further support if necessary.
“We’ve not talked about an extension of the program. We are determined to continue with this program… But if it is necessary to look at additional funds or extend the program, we’ll look at it,” he stated.
Source: mynewsgh.com
