Finance Minister, Dr. Mohammed Amin Adam, has outlined the government’s successful attainment of several key fiscal targets within the framework of the International Monetary Fund-supported program.
These achievements encompass significant milestones such as zero Central Bank borrowing, maintaining a ceiling of GH¢4.3 billion for the primary deficit on a commitment basis, ensuring zero accumulation of external debt payments, and adhering to a non-concessional borrowing limit of $66.2 million in present value terms.
Moreover, by the conclusion of December 2023, the government had met its indicative targets, including securing a minimum of GH¢114.19 billion for non-oil public revenue and allocating at least GH¢4.07 billion for social spending.
Addressing reporters at the Monthly Press Briefing, Dr. Amin Adam emphasized that ongoing assessments were being conducted regarding the indicative target of maintaining a ceiling of zero net change in the stock of payables of the central government and payables to the Independent Power Producers (IPPs).
These assessments are slated to be finalized ahead of the IMF Executive Board meeting for the 2nd Review.
Furthermore, Dr. Adam highlighted the implementation of structural reforms as part of the IMF-supported program’s second review. These reforms encompass the expansion of the GIFMIS infrastructure to include over 280 IGF-reliant institutions and the publication of the final report of the first quarterly audit of the Electricity Company of Ghana’s single account on the Public Utilities and Regulatory Commission’s website.
“The positive results of the first and second reviews of the implementation of the IMF-supported Programme testify that we are achieving the Programme’s objective of restoring macroeconomic stability and debt sustainability, building resilience through the implementation of strong and wide-ranging structural reforms, and laying the foundations for stronger and more inclusive growth, while protecting the poor and vulnerable. We are now seeing signs of macroeconomic stability and economic recovery”, he added.
Growth turned out to be more resilient and robust in 2023 than initially programmed as Gross Domestic Product grew by 2.9% compared to the original projection of 1.5% and the revised projection of 2.3%.
Headline inflation also declined by 31 percentage points from 54.1% at the end of 2022 to 23.2% at the end of Dec 2023 before inching up slightly to 25.8% in March 2024 due largely to base effect.