The Ghanaian government’s policies initiated in the 2015 budget to reduce the country’s debts and budget deficit has welcomed by the International Monetary Fund, (IMF).
The IMF has also greeted Ghana’s policy to clear-out the payroll and cut the public sector salary bill in the budget offered to Parliament on Wednesday by Finance Minister Seth Terkper.
This view point is shared in a statement released by the Bretton Wood institution after completing the third round of discussion with Ghana to find out a possible program.
IMF’s mission led by Mr. Joël Toujas-Bernaté stated in a statement about 2015 budget that it take into account some important measures to increase the revenues, to eradicate distortive and ineffective energy subsidies, and to hold progress in Ghana’s relatively high public wage bill.
Besides, the budget agrees to for maintaining public investment above 5 percent of GDP as well as growing social protection expenditure targeted at the most vulnerable.”
Moreover, the mission has also greeted the “government’s aim to apply structural improvements to strengthen a continued consolidation towards a financial shortfall objective of 3.5 percent of GDP by 2017”.
That statement from the Fund also revealed that “Reforms will include strengthening public finance management, reducing tax exemptions, enhancing tax administration and reviewing the earmarking of revenues for statutory funds”.
Furthermore that statement also disclosed that the Ghanaian government and the mission made a noteworthy advancement towards mutual understanding to strengthened macroeconomic policies, as well as on a medium-term fiscal pathway consistent with confirming debt sustainability and decreasing the external current account deficit.
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