Wednesday , August 4 2021

Ultimately budget without IMF for Akufo-Edo



The President of Ghana has finally seen fit in his budget: Without the training of IMF, the country has finished this year with a three-year program. However, this is the third finance law developed by this Nana Akupo-AdoIt is the first without education of the organization which has ratified the Economic Reform Program with a grant of $ 900 million in the country. The former president of the contract was concluded by the previous power, Maha of John DramaAnd the IMF had applied certain conditions for which the government needs to improve internal resources, control its costs and reduce its deficit. Terms that limit the space for government's maneuvers, for example, recruitment to public service, and who announced by the current president, who have entered into power since, when they intend to get rid of them from the parents at the end of the program.

Read also: Ghana: Free from IMF Tutorial, Akufo-Edo promises a new era of prosperity

Now this week is done with the money bill introduced in Parliament. Communication Minister Koo Oopsing Nkruma confirmed that the draft budget has been prepared to bring "More flexibility, hope and improvement in the standard of living of people".

Heavy legacy and economic sovereignty

Ghana has regained its economic sovereignty, claiming that President Akuffo-Edo has claimed since coming to power. In the outline of the project, Ghana's Minister of Finance, Can Auree-etaSaid that despite the end of the program with IMF, the government will ensure the maintenance of financial growth, while ensuring the speed of growth to make the national economy a new dynamic. To do this, the investments in the infrastructure will be intensified, "Without compromising debt sustainability"And credits for small and medium-sized enterprises will also be increased.

According to the minister, during the first two years, the government worked to improve the slips recorded in previous years, which strictly adheres to the objectives set out in the IMF program. Thus, the macroeconomic environment has improved significantly, as the Minister states that "Central bank's rate of interest as well as decrease in inflation and budget deficit, while at the same time improving growth, reserves and credit ratings. ".

For the minister, with the room for maneuver, the government will ensure the implementation of the President of the Akhupo-Edo mandate program, he adds that despite efforts, there is more to be done to make the development more stringent, sustainable and best. Including

"We do not claim to finish all the problems of Ghana, but our work in the first two years is a good foundation, which will allow more people to improve the lives of the people in the coming years," Communications Minister Kozo Oopong Nakruma said.

Similarly, the Finance Minister, who had made the details of the financial communications with his Communications Committee, said he would ensure that the government will maximize taxation and oil revenues.

Worries

Apart from the IMF program, this is not without raising concerns, including analysts, besides exit investors. While some international rating agencies believe that Ghana still needs technical assistance from IMF, some economists advance, strongly asserts that this is a requirement. This is the case for Professor Godfred Bockpin, the founder of the Ghanaian firm of financial expertise and an example of Ima's audit. At a press conference on the 2019 budget organized by the Cabinet in Accra on 23 November, he raised some concerns about debt durability, financial discipline and mobilization of tax revenue.

Read also: Ghana: $ 2 billion deal against Sonohideo is "still controversial."

According to him, without IMF supervision, the government will have to relax financial prudence and have to resort to more debt in international markets. In this sense, Professor Bokhi recommended that the government could use another, more flexible tool of IMF, such as Precautionary Line and Liquid (LPL) or Policy Support Program (PSP), which will allow advice and support from funding without the help of debt system. "For example, SPP helps countries create effective economic programs, and donors give strong signals to multilateral development banks and markets.Professor added that he has not failed to register, "Impact of financing to infrastructure deficit impacts productivity growth".

The Ghanaian government has announced a huge plan to increase the capital expenditure on millions of crores of rupees to fund its structural loss.


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