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Story by Naa Anyema Collison
The Institute of Fiscal Studies (IFS) has recommended to government to sped up the promised review of it flagship program to reduce expenditure, this is because the IFS says that Ghana’s economy is still weak and fragile, asserting the country still has an unstable macroeconomic environment.
The IFS challenged assertions by the government that it has turned the corner as captured in its mid-year budget.
In his presentation of the mid-year budget review last month, Finance Minister Mohammed Amin Adam touted the slowdown in inflation and a reduction of deficit amongst other key economic indicators as one that tells a story of economic recovery.
However, the Institute of Fiscal Studies has challenged the claims asserting the economy is still weak and fragile.
Addressing a press Conference on a review of Ghana’s present fiscal and macroeconomic performance concerning the 2024 fiscal policy review of the government, Acting Executive Director, Dr. Said Boakye said “This is because despite the government’s promise to review these flagship programs as part of the IMF program, the review is taking too long. Even in the 2024 mid-year budget, nothing was heard about the status of the review.”
He concluded that “the government should understand that given the temporary nature of the positive effects of the debt reliefs, this measure is needed to help strengthen the fiscal position.”
A stronger fiscal position, in turn, will facilitate a more robust macroeconomic recovery in the near term.
