If Ghana is approved for an International Monetary Fund (IMF) program, the World Bank is anticipated to lend the country nearly $1 billion.
This is distinct from the $3 billion in IMF funding that would strengthen Ghana's balance of payments as part of a Fund program.
During the IMF/World Bank spring meetings on April 20, 2023, Finance Minister Ken Ofori-Atta revealed this to George Wiafe on PM Express Business Edition in Washington, DC, the USA.
According to Mr. Ofori-Atta, a program would be used to distribute the anticipated financial support from the World Bank over the following three years.
He continued by saying that several projects and activities included in the 2023 budget will receive funding in advance.
He stated: "Other donor partners are anticipated to join forces in terms of providing the necessary financial assistance to help Ghana's recovery under the IMF plan."
Ghana's IMF program request status
According to Mr. Ofori-Atta, Ghana has fulfilled all requirements; hence, the government will be given an IMF program.
IMF Managing Director Kristalina Georgieva has previously emphasized that the Fund will swiftly accept the contract if all prerequisites have been satisfied.
The Paris Club of Bilateral Creditors' guarantee that the group is committed to providing the necessary funding assistance is what the IMF is anticipating before it can ask its board to approve Ghana's program.
adherence to financial restraint
As part of an IMF program, Mr. Ofori-Atta has promised to severely enforce budgetary responsibility.
In the future, he committed to acting differently in light of the difficulties Ghana's economy has faced.
He said, "This is what we need to do to support the IMF program's success and prevent any further derailments."
The administration would work as hard as possible, Mr. Ofori-Atta continued, "to improve revenue mobilization to increase government expenditure."
He said, "We'll also make sure that every expense is recorded under GIFMIS.
He stated that in order to reduce waste in the public sector, the administration will also implement new policy initiatives.
He continued, "We will make sure that the needless spending is rigorously dealt with moving ahead."
Proposed tax measures and business concerns
In order to increase revenue mobilization, the Ghana Revenue Authority has implemented new tax policies, which Mr. Ofori-Atta has defended.
He argued that many companies underreport their revenues and do not pay taxes.
"Recent audits and exercises conducted by the Ghana Revenue Authority revealed that many firms do not pay taxes. Some people even underreport their income in order to pay less in state taxes, and we believe that this must end.
He stated that the government would make every effort to guarantee that taxes are properly used to revive the economy and launch initiatives that will lower the cost of doing business in the nation.
Ofori-Atta continued, "We should be aware that the economy is struggling, and steps should be taken to stabilize the situation.
However, he acknowledged that because of the delay in adopting the bill, the government might not reach the expected revenue objective from taxes.
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