Mr Ken Ofori-Atta, Minister for Finance

Minister for Finance Mr Ken Ofori-Atta has stated that the Akufo-Addo-led New Patriotic Party (NPP) government will not return Ghana to the International Monetary Fund (IMF) under any circumstance. 

He noted the consequences of returning to the Fund are dire and as a proud nation; Ghana has the capacity and resources to move forward as a nation.

Some economic analyst and experts in the financial sector have called on the government to return to the Britain Woods institution to resuscitate the country’s economy from the current economic difficulties and financial shortfalls.

Former Chairman of the Finance Committee of Parliament, Dr Mark Assibey Yeboah, is one of such people.

The NPP former lawmaker believes the introduction of the controversial electronic transactions levy is not the solution to the nation’s dwindling revenues. 

However, Mr. Ofori-Atta at the Government Town Hall Meeting in Tamale yesterday reiterated that the government of President Nana Addo Dankwa Akufo-Addo will not return to the IMF.

Erstwhile government of President John Dramani Mahama ran to the Bretton Woods institution in 2015 for policy credibility and financial support under stringent conditions when Ghana’s economy was facing serious liquidity challenges.

Government at the time could not employ workers because there was labour rationalisation as one of the IMF conditionalities and it took the effort the Akufo-Addo administration to exit the programme.

Mr Kojo Oppong Nkrumah, Minister for Information

Mr Ofori-Atta said the government is determined to tackle issues of the public debt stock so that it can be sustained going forward and “we would be able to pay for it”.

He stated the country is blessed with the current political leadership with the charge of providing an economic emancipation.

“And the things that we have to tackle now are the issues of our debt, so that we can sustain it going forward and be able to pay for it. The issue of our infrastructure, the roads that you need – so that we can build them to open up the space for you and then tackling the issue of youth employment” he indicated.

According to the Finance Minister, the country is experiencing a very different situation from 2017 till now compared to the past and “we can recognize, admitting that, we can do better”.

“We need the deep spirit of the Ghanaian and the genius of our entrepreneurship to be able to move forward”, Mr Ofori-Atta added.

Govt committed to 20% expenditure cut

Mr Ofori-Atta said government as part of a prudent fiscal consolidation was committed to cutting down expenditure across board by 20 per cent.

He said government’s decision to rationalize expenditure by some 20 per cent is to decisively strengthen fiscal consolidation of the 2022 budget to address critical concerns of the economy, create jobs for the youth, obtain a positive primary balance and stabilize debt.

He said the decision is in accordance with the Public Management Act (PFMA) and will help strengthen expenditure management, bring the deficit back within limit, make development sustainable and channel expenditure to critical sectors of the economy to increase growth and create jobs

“We are committed like we have stated earlier to cutting down public expenditure by 20 per cent. This means that our fiscal consolidation agenda going forward is not going to be only revenue-led but also expenditure focused. And through the E-levy, government can rack in more revenue to invest in important sectors of the Ghanaian economy to the benefit of all,” the Minister for Finance said.

Townhall meetings

Government has been on the road holding series of Townhall meetings to sensitize Ghanaians on the Electronic Transactions Levy (E-levy), the subject of which has raised serious controversies particularly among market women and other businesspersons who rely heavily on Mobile Money as a means of transacting business. 

However, allaying the fears of Ghanaians, Minister for Information, Kojo Oppong Nkrumah said the levy provides Ghanaians with an opportunity to contribute to Ghana’s economic and infrastructural development. He said the E-levy will put government in a better position to provide for the needs of Ghanaians.

Also present at the Townhall meeting were the Minister for Fisheries and Aquaculture, Mavis Hawa Koomson; Deputy Minister for Transport, Alhassan Tampuli Sulemana and Northern Regional Minister, Alhaji Shani Alhassan Saibu.

Mrs. Koomson on her part took time to demystify misconceptions on the levy.

She said government contrary to claims being peddled by opposition factions will plough back the proceeds that accrue from the levy into sectors of the economy that will benefit the generality of Ghanaians.

Further, Mr. Tampuli emphasized the need for Ghana to be self-reliant and look internally to mobilize revenue rather than go cup in hand to the International Monetary Fund (IMF).

He said going to the Bretton Wood institution comes with a lot of conditionalities that will restrict government from providing for the basic needs of Ghanaians.

Regional Minister, Alhaji Shani encouraged citizens to embrace the levy as government explore other mechanisms of burden-sharing and to raise additional revenue for the betterment of all citizens.