fiscal deficit

“We will surely review IMF deal”- Yaw Osafo Marfo

Yaw Osafo-Marfo, senior minister designate, has reiterated that Akufo-Addo administration will surely renegotiate the Extended Credit Facility  arrangement between Ghana government and International Monetary Fund (IMF) deal

Responding to questions during his vetting on Friday as a senior minister, Mr. Marfo said the components of the agreement are not friendly to the policies of the government as contained in the manifesto of the NPP and as such the need to renegotiate to

“We will surely review IMF deal. Akufo-Addo needs fiscal space to implement his program which the IMF program does not currently allow.”

He further added that, that “most targets set between the IMF and NDC government were missed. So ‘ even the IMF would want the program reviewed’

Ghana for some years now still finds it difficult to stay within agreed set targets with the Fund.

By July 2016, revenue shortfall amounted to over GH¢2 billion. The end year target of 5 per cent was reached in July with a deficit of GH¢8.3billion. By September 2016 the deficit had reached 5.9 per cent against a target of 5.3 per cent of GDP.

Moreover, the country’s debt stock keeps rising far beyond target of 66% debt to GDP ratio.

The debt rose to $28.3 billion by September 2016, representing 72 per cent of the country’s GDP, data from Bank of Ghana ( BoG) indicates.