President Nana Addo Dankwa Akufo-Addo has announced the government’s framework for the post Covid-19 programme for economic growth and the International Monetary Fund (IMF) support for its implementation and the work being done by the Ministry of Finance in preparation for the 2023 budget.
Nana Akufo-Addo during his Sunday nationwide broadcast said, “At the Cabinet Retreat, we took some firm decisions that should put us on the path that will take our nation out of the current economic difficulties. Let me try and give you an outline of the main decisions without getting into the technical language that baffles many of us.”
To restore and sustain debt sustainability, the President noted the plan is to reduce the country’s total public debt to GDP ratio to some fifty-five per cent (55%) in present value terms by 2028, with the servicing of external debt pegged at not more than eighteen per cent (18%) of our annual revenue also by 2028.
President Akufo-Addo stated the aim is to restore and sustain macroeconomic stability within the next three (3) to six (6) years, with a focus on ensuring debt sustainability to promote durable and inclusive growth while protecting the poor.
Addressing issues of the nation’s revenue mobilization, Mr. Akufo-Addo said the government is committed to improving the revenue collection effort from the current tax-revenue to GDP ratio of 13% to between 18 and 20%, to be competitive within the West Africa sub-region.
He asserted the Ghana Revenue Authority (GRA) is rolling out an extensive set of measures to support this enhanced revenue mobilisation. All of us must do our patriotic duty, and support the GRA in this exercise.
The President added there is a review of reforms in the energy sector, stating the government has decided to cap statutory funds as well as implementation of exemptions Act and a new property rate regime.
Meanwhile, the policy of 30% cut in the salaries of political office holders including the President, Vice President, Ministers, Deputy Ministers, MMDCEs and SOE appointees in 2023. Similarly, the 30% cut in discretionary expenditures of Ministries, Departments and Agencies remains unchanged.