President Akufo-Addo has disclosed that government has planned to reduce the country’s total public debt to GDP ratio to some 55% in present value terms by 2028 as part of measures to restore and sustain debt sustainability.
According to him, government also plan to peg the servicing of external debt at not more than 18% of the country’s annual revenue by 2028.
President Akuffo Addo noted that at the just-ended Cabinet Retreat at Peduase Lodge, government took some firm decisions that should put Ghana on the path that will take the nation out of the current economic difficulties.
He disclosed that government has agreed on a framework for the Post COVID-19 Programme for Economic Growth and the IMF support for its implementation, as well as the work being done by the Ministry of Finance in preparation for the 2023 budget.
“We are committed to improving the revenue collection effort, from the current tax-revenue to GDP ratio of thirteen (13%) to between 18-20%, to be competitive with our peers in the West Africa Region. The GRA is rolling out an extensive set of measures to support this enhanced revenue mobilisation. All of us must do our patriotic duty, and support the GRA in this exercise.
“We are aiming to restore and sustain macroeconomic stability within the next three (3) to six (6) years, with a focus on ensuring debt sustainability to promote durable and inclusive growth while protecting the poor. We have decided to review the reforms in the energy sector, capping of statutory funds, implementation of the exemptions Act and a new property rate regime.
President Akufo-Addo
Also, the President indicated that government has decided to continue with the policy of 30% cut in the salaries of political office holders including the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and SOE appointees in 2023, just as it will continue with the 30% cut in discretionary expenditures of Ministries, Departments and Agencies.
Diversifying the structure of the Ghanaian economy
The success of government’s efforts at diversifying the structure of the Ghanaian economy from an import-based one to a value-added exporting one is what will, in the long term, help strengthen the economy, the President said.
Addressing the nation today, October 30, 2022, President Akufo-Addo stated that Ghana is making some progress with the 1D1F but “our current situation requires that we take some more stringent measures to discourage the importation of goods that we can and do produce here”.
To this end, he disclosed that government will review the standards required for imports into the country, prioritize the imports, as well as review the management of foreign exchange reserves, in relation to imports of products such as rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water and ceramic tiles, and others which, with intensified government support and that of the banking sector, can be manufactured and produced in sufficient quantities in Ghana.
“Government will, in May 2023, that is six months from now, review the situation. We must, as a matter of urgent national security, reduce our dependence on imported goods, and enhance our self-reliance, as demanded by our overarching goal of creating a Ghana Beyond Aid.”
President Akufo-Addo
He underscored that as much as “we believe in free trade, we must work to ensure that the majority of goods in our shops and marketplaces are those we produce and grow here in Ghana”.
This he said, is the reason why “we have to support our farmers and domestic industries, including those created under the 1-District-1-Factory initiative, to help reduce our dependence on imports, and allow us the opportunity to export more and more of our products and guarantee a stable currency that will present a high level of predictability for citizens and the business community”.
The President emphasized that “Exports, not imports, must be our mantra!” because Accra hosts the headquarters of the Secretariat of the African Continental Free Trade Area.
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