Government has said that the 30 per cent cut in expenditure of all Ministries, Departments and Agencies (MDAs) it announced in March this year as part of a raft of measures to ensure fiscal consolidation of the Ghanaian economy is yielding results.
Minister of Finance, Ken Ofori-Atta who said this at a press briefing in Accra on Wednesday 28, 2022, explained that the expenditure cut was necessary to align government spending to revenue mobilization by reducing cost and pruning expenditure to hasten the country’s recovery from the COVID-19 pandemic.
“Current year expenditure has also largely been contained owing to the operationalization of expenditure cuts announced since March. We are on course with expenditure rationalization efforts, and will continue to enforce strict adherence to these measures,” the Minister said.
He said this is among other important measures by government to revive the Ghanaian economy and set it back in motion stressing that the cut is gradually helping regain investor confidence in the Ghanaian economy.
Government is negotiating a fund-support programme with the International Monetary Fund (IMF) following a devastating impact of the economy to the COVID-19 pandemic and the geopolitical tension between Russia and Ukraine.
Mr. Ofori-Atta assured that government is committed to negotiating a comprehensive programme with the Bretton Woods Institution to put the country on the path of recovery. He said government has put in place a comprehensive deal with the Fund that will take the economy back to its pre-COVID-19 levels.
The robust programme, he said is hinged on seven (7) pillars namely: Debt Sustainability; Fiscal Consolidation; Strengthening Monetary and Exchange Rate Policies; Building Strong Financial Institutions; Macro-Critical Structural Reforms; Maintaining Peace and Security; and Economic Growth and Transformation.
