Mr. Joe Jackson, a financial analyst and chief operating officer at Dalex Finance, is arguing against increased government spending on several programs, particularly the free Senior High School (SHS) program’s feeding component.
In his opinion, economic managers need to make tough decisions to look for methods to reduce spending because times are tough and the nation is broke.
Prior to Monday’s presentation of the mid-year budget review by Finance Minister Ken Ofori-Atta, he made this statement in an interview with TV3.
“It is time for us to look at all the expenditure cuts, it is time for us to look and wonder, do wo we want to spend this much on feeding and boarding in the SHS regime?
“Is this what we want to spend our money in the such difficult times on? These are hard times, there are hard decisions to be taken and one of the things we must realize is that Ghana is broke.”
Ghana’s economy is currently facing significant difficulties, which has compelled it to request assistance from the International Monetary Fund.
In order to interact with the Ghanaian administration, a staff delegation led by Carlo Sdralevich came in Ghana on July 6. On Wednesday, July 13, the team finished its preliminary work.
The Vice President, Dr. Mahamudu Bawumia, the Finance Minister, Ken Ofori-Atta, and the Governor of the Bank of Ghana, Ernest Addison, all met with the IMF delegation.
In order to discuss social spending, they also met with the Finance Committee of the Parliament, civil society groups, and development partners including UNICEF and the World Bank.
Following the expedition, Mr. Sdralevich made the following remark, stating that Ghana is dealing with a terrible economic and social crisis in a setting that is becoming more complex on a global scale.
The COVID-19 pandemic has resulted in a dramatic worsening of the financial and debt crisis. Investors’ worries have also led to credit rating downgrades, capital outflows, a loss of access to external markets, and an increase in domestic borrowing prices.
Furthermore, Ghana is experiencing a restricted amount of leeway for maneuvering as a result of the Covid-19 pandemic shock and the global economic shock brought on by the conflict in Ukraine. These unfavorable events have contributed to a slowdown in economic growth, an increase in unpaid bills, a significant depreciation of the exchange rate, and a rise in inflation.
“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term,” the IMF said.
It added “The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.
“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.
“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”
On Friday, July 1, the Ghanaian government declared that it was requesting assistance from the IMF.
According to a statement from the Ministry of Information, this came after a phone call between the President and Miss Kristalina Georgieva, the IMF Managing Director, in which the President informed her of Ghana’s decision to work with the Fund.
