By Finance Minister Dr. Mohammed Amin Adam highlighted that the government successfully attained several crucial fiscal targets outlined in the International Monetary Fund-supported program.
These achievements encompass zero Central Bank borrowing, a ceiling (cumulative) of GH¢4.3 billion for the primary deficit on a commitment basis, zero accumulation of external debt payments, and adherence to a non-concessional borrowing limit of $66.2 million in present value terms.
Furthermore, by December 2023, the government met indicative targets, including a minimum of GH¢114.19 billion for non-oil public revenue and a minimum of GH¢4.07 billion in social spending.
Speaking at the Monthly Press Briefing, Dr. Amin Adam noted that the assessment of the indicative target regarding a ceiling of zero net change in the stock of payables of the central government and payables to the Independent Power Producers (IPPs) is ongoing, with completion expected before the IMF Executive Board meeting on the 2nd Review.
He emphasized that the government has also executed structural reforms as part of the 2nd Review of the IMF-supported program. These reforms include expanding the GIFMIS infrastructure to encompass over 280 IGF-reliant institutions and publishing 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.
In 2023, growth proved to be more resilient and robust than initially anticipated, with Gross Domestic Product expanding by 2.9% compared to the original projection of 1.5% and the revised projection of 2.3%.
Headline inflation also saw a significant decline of 31 percentage points, dropping from 54.1% at the end of 2022 to 23.2% at the end of December 2023. However, it inched up slightly to 25.8% in March 2024, primarily due to base effect.
