Mr Anthony Sarpong, a Senior Partner at KPMG Ghana, has advised government to seek the interest of vulnerable citizens in the country, in the yet-to-be signed agreement with the International Monetary Fund (IMF).
Speaking in an interview, Mr Sarpong disclosed that many people are likely to fall into the poverty line due to the current economic crises, hence the need for a programme that supports the vulnerable in the society.
“A short term measure to ensure that whatever programme that government agrees with the IMF protects the vulnerable. One will expect that, the vulnerable are protected due to the current crises.
“Therefore any measure that doesn’t protect the poor and vulnerable will not go well with the country.”
Anthony Sarpong
According to him, it is time for the government to undertake austerity measures that will have the vulnerable as a priority. “Government must take austerity steps to contain the situation and we hope that such measures are taken with the poor and vulnerable considered”, he emphasized.
Ghana And The IMF
This is the 17th time Ghana has gone to the IMF for an economic support since it joined the Bretton Woods institution. This has become necessary after one of government’s flagship revenue mobilization measures, E-Levy in the 2022 budget, failed to give the projected revenue.
Talks have begun on a comprehensive debt sustainability analysis with the IMF for a US$3 billion support programme. The government has stated that, it is committed to ensuring that a comprehensive package is negotiated with the International Monetary Fund with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth, and promoting social protection.
The government further indicated that, progress has been made in the quest to seek a programme support before the end of the year to re-inject some confidence into the economy. Government has noted that it is hopeful of closing a favorable deal with the IMF by the end of this year.
Currently, the country is facing an unprecedented economic challenges ranging from hike in prices of goods and service, increase in petroleum products as well as transport fares to the depreciation of the local currency.
Delay In 2023 Budget Presentation
The Finance Minister is targeting November 24 to read the 2023 budget, according to the Majority Leader in Parliament, Osei Kyei-Mensah-Bonsu.
The budget is highly anticipated because of Ghana’s current economic crisis and negotiations with the International Monetary Fund for support. In response to the Minority Leader who raised concerns about a possible breach of the law if the budget is not presented on the 24th of November, Mr. Kyei-Mensah-Bonsu further assured that the budget will be read before November 30.
The government already expected the 2023 budget to delay due to talks with the International Monetary Fund (IMF) for the bailout. The budget statement was scheduled to be read on November 15, as stipulated by the Public Financial Act.
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