The government’s choice to work with the International Monetary Fund (IMF) has been characterized as one that will strengthen the nation’s budgetary situation and restore investor confidence.
Ghana urgently needs to access the Fund due to the current economic difficulties, claims auditing and accountancy firm Deloitte Ghana.
“Based on history, the fund may force government to boost income which may be in the form of new taxes, which is likely to worsen the misery of Ghanaians especially within this current economic situation,” the business stated in its evaluation of the 2023 Budget Statement and Economic Policy.
“Some conditionalities may require government to implement expenditure cutting measures including halting new employment and ongoing and new capital projects in the public sector,” Deloitte Ghana added.
It however pointed out that the possible IMF-supported programme is expected to increase Ghana’s foreign currency reserves as well as stabilise the value of the local currency and soaring inflation which government says is an imported one.
Deloitte Ghana in its review also said an IMF programme will result in credibility and boost investor confidence.
This, it added will ensure Ghana regains access to the international capital market under more favourable conditions in the medium to long term.
Meanwhile, government is hoping to reach a Staff Level Agreement by the end of this year with the IMF to help restore macroeconomic stability, among others.
Ghana is targeting to receive US$3 billion over three years under an Extended Credit Facility from the IMF.