New logo for the International Monetary Fund (IMF)
The International Monetary Fund (IMF) has urged that the government’s midyear budget review focuses on how the government intends to cater for the shortfall in revenue targets for the year.
In what seems to be the Fund’s prior knowledge of the focus of the presentation next month, it has welcomed the government’s decision and says it should be completely followed.
The IMF’s comments come on the back of a meeting with government officials as part of its team’s visit to Ghana to monitor the progress made under the program.
“Available data suggest an increase in government spending-mainly due to frontloading of capital spending and goods and services-while revenue underperformed in the first four months of the year…we welcome the government’s intention to present a balanced and comprehensive fiscal package to Parliament at the time of the midyear budget review.”
A statement on the Fund’s assessment further highlighted the need for Ghana to develop its financial sector as the current situation of non-performing loans and low capital levels could hamper access to credit and investment.
Meanwhile the IMF has lauded the lowering of the Bank of Ghana’s policy rate which is expected to impact on loans granted to customers.
In addition, the Fund says it welcomes the efforts to strengthen governance in the State Owned Enterprises.