Mr. Joe Jackson, a financial analyst and chief operating officer of Dalex Finance, is arguing against increased government expenditure on several programmes, particularly the free Senior High School (SHS) program's food component.
In his opinion, economic managers need to make tough decisions to seek for methods to reduce spending since times are tough and the nation is bankrupt.
Prior to Monday's presentation of the mid-year budget review by Finance Minister Ken Ofori-Atta, he made this statement in an interview with TV3.
The moment has come for us to examine all the cutbacks to spending and ask ourselves if we still want to spend this much on food and other necessities. "Are they the things we want to spend our money on in these challenging times? We must acknowledge that Ghana is broke as we navigate these difficult times and make difficult decisions.
Ghana's economy is now facing significant difficulties, which has compelled it to request assistance from the International Monetary Fund.
In order to interact with the Ghanaian administration, a staff delegation led by Carlo Sdralevich came in Ghana on July 6. On Wednesday, July 13, the crew finished their preliminary work.
The Vice President, Dr. Mahamudu Bawumia, the Finance Minister, Ken Ofori-Atta, and the Governor of the Bank of Ghana, Ernest Addison, all met with the IMF delegation.
In order to discuss social expenditures, they also met with the Finance Committee of the Parliament, civil society groups, and development partners including UNICEF and the World Bank.
Following the expedition, Mr. Sdralevich made the following remark, stating that Ghana is dealing with a terrible economic and social crisis in a setting that is becoming more complex on a global scale.
The COVID-19 epidemic has resulted in a dramatic worsening of the financial and debt crisis. Investors' worries have also led to credit rating downgrades, capital outflows, a loss of access to external markets, and an increase in domestic borrowing prices.
Furthermore, Ghana is experiencing a restricted amount of leeway for manoeuvring as a result of the Covid-19 pandemic shock and the global economic shock brought on by the conflict in Ukraine. These unfavourable events have contributed to a slowdown in economic growth, an increase in unpaid debts, a significant depreciation of the currency rate, and a rise in inflation.
Initial negotiations on a comprehensive reform plan to reestablish macroeconomic stability and establish debt sustainability were held by the IMF team. The team made headway in determining the short-term policy goals and reviewing the economic situation, according to the IMF.
"The discussions focused on restoring fiscal balances in a sustainable manner while safeguarding the weak and the disadvantaged," it said. "They also covered preserving the stability of the banking system and proposing reforms to boost development, generate employment, and promote governance.
"IMF personnel will continue to closely monitor the economic and social situation and work with the authorities on the development of an Enhanced Domestic Program that might be backed by an IMF arrangement and with broad stakeholder participation in the coming weeks,"
"We reiterate our commitment to help Ghana through this challenging moment in accordance with IMF policy.
Staff thank the government, civil society, and development partners for their helpful participation and support during the mission.
On Friday, July 1, the Ghanaian government declared that it was requesting assistance from the IMF.
This came after the President and IMF Managing Director, Miss Kristalina Georgieva, spoke over the phone to discuss Ghana's intention to work with the Fund, and the Ministry of Finance issued a statement.
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