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Unchecked Election Spending Could Take Ghana To IMF Again
 
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12-Feb-2018  
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Economist, Professor Peter Quartey has cautioned that the country could return to the International Monetary Fund (IMF), for financial support if government fails to control its expenditure during the 2020 elections.

He explains that the unbridled spending associated with most election years have affected the running of the economy in the succeeding years.

Prof. Quartey’s comments come on the back of the assurance by President Akufo Addo that his administration will not see the country seek support from the Fund after ending the current program.

Addressing Parliament during the presentation of the State of the Nation on Thursday- February 8, 2018, the President stressed that he should achieve this aim by fostering the economic gains made over the last one year.

“If you look at our history, it looks like we are able to manage the economy very well until we get to elections; it is in election years that we have a problem. When we were with the Fund, even approaching the elections in 2016, we saw some very decent figures. But then three months into the following year, we realized that we had lost that control,” Prof. Peter Quartey told Citi Business News.

The Head of the Economics department at the University of Ghana further suggested that successive governments commit to achieving set economic goals within their four or eight-year mandate as may be the case.

“…It is being prudent during election years; whatever we want to do, we must realize that every government has a four-year mandate. As such, they should be able to manage and complete all prioritized projects within the time period,” he added.

Ghana agreed to an Extended Credit Facility (ECF) with the International Monetary Fund (IMF) in 2015.

Under the agreement, the Fund is expected to provide Ghana with some financial assistance to the tune of 918 million dollars.

This is to be disbursed under eight tranches.

The aim of the ECF is to ensure fiscal stability, reduce budget overrun and restore macroeconomic stability.

The agreement, initially planned to end in 2018, has since been extended to be completed with the budget cycle and it will end in April 2019.
 
 
 
Source: citibusinessnews.com
 
 

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