Vice President Dr. Mahamudu Bawumia, speaking at the official launch of the Accra Business School’s IT Programmes on Thursday, 14th July 2022 said: “with enhanced fiscal discipline and structural reforms to restore debt sustainability and growth, we should emerge stronger than we have with the previous 17 IMF programs”.
“But it will take hard work and difficult decisions. With great pride and personal pleasure, it is good that we are all part of this launch of three new programmes by the Accra Business School in collaboration with the South East Technical University," he said.
“If you take out the fiscal impact of this quadruple whammy, Ghana will not be going to the IMF for support because our fiscal, debt and balance of payments outlook would be sustainable. Of the four factors, two (COVID-19 and the Russia-Ukraine war) were external and the other two (the banking sector clean-up and the excess capacity payments) were the result of policies of the previous government," he added.
He explained why the government is seeking financial assistance from the International Monetary Fund (IMF) despite earlier claims that the economy was buoyant.
He noted that in the midst of the worsening economic challenges, the government’s options for generating enough revenue were limited, forcing the country to run to the IMF for support.
“In the midst of this global crisis, Ghana’s fiscal and debt sustainability has worsened. Some commentators have argued that the expenditures by government alone could not be the reason for the large increase in the fiscal deficit of the debt stock. In fact they are right.”
“Covid-19 expenditures alone were not the reason for the increase in Ghana’s debt stock by the end of 2021. In fact, as I stated in my April 7th lecture, in addition to COVID-19, there were two major items of expenditure that are critical to understanding the evolution of the fiscal deficit and the debt stock: the Banking Sector Clean-up (GH¢25 billion) and the Energy Sector Excess Capacity payments (GH¢ 7 billion),” he explained.
The Vice President disclosed that government intends to introduce a policy that will authorize the Bank of Ghana to purchase any amount of gold mined in Ghana to generate more revenue.
The IMF concluded its visit to Ghana on Wednesday, July 13, 2022.
IMF again reaffirmed its commitment to support Ghana.
Below is the full text of his speech
Source: Peacefmonline.com
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |
Well spoken, if JDM had had these two external crises Ghanaians would have suffered more than we see today. JDM could not even manage power crises which was internally induced to enable them sign more power deals and do more generator business. It is not for nothing that, all the giant vehicle manufacturers are assembly vehicles in Ghana. This is possible because of the good policies of the NPP. We need to support this government in this difficult times.
@JOSH THIS INCOMPETENT COMEDIAN SHOULD NEVER EVEN DREAM OF BECOMING PRESIDENT THIS ***barred word*** COMEDIAN WITH ALL THOSE ***barred word*** TITLES AND BOOK LONG BULLSHIT THAT CANT SOLVE ANY PROBLEM BUT JUST EMPTY SPEECHES EVEN A WOMAN AT MAKOLA IS FAR BETTER THAN THIS FAILURE....GOD SAVE GHANA
My brother, what ever you say people will hear, i doubt if they will listen. Just sit back and play some of the things you said about John Mahama and the NDC before 2017 and what is happening currently. If you are sincere with yourself you will admit that some of the things you said was as a result of John Mahama's incompetence may not be entirely true. The gentle giant and undoubtedly the most successful president in the 4th republic John Kufuor once apologized to Ghanaians that some of the things he said in opposition are not as easy now that he is in the driving seat. Ghanaians accepted the apology and we moved on. That was a show of statesmanship. It takes a gentleman to say i got it wrong. Also learn from Kufour.
I LIKE THIS DR. BAWUMIA MAN TO BE NEXT LEADER IN GHANA WITH HIS IMPRESSIVE KNOWLEDGE AND EXPERIENCE FROM ACADEMIA, IN EUROPE, CANADA, USA AND HIS DIGITIZATION AGENDA FOR THE YOUTH EMPLOYABLE SKILLS AS CHINA HAS DONE TO GHANA THE BECON OF AFRICA. HE IS THE PRODUCT OF CANADIAN FRAZER INSTITUTE WHERE MAT KARNEY WENT FORMER GOVERNOR OF CANADA AND BRITAIN. ***barred word*** MAHAMA DOESN'T COME CLOSED TO HIS LEVEL. A MAN WHO WAS CONTRACTED BY MUGABE TO HELP THEIR CENTRAL BANK, A VISITING LECTURE AT OXFORD UNIVERSITY. WORL CLASS GOVERNOR WHO WAS BROUGHT TO GHANA BY FORMER PRESIDENT KUFFOUR FROM BAYLOR UNIVERSITY AT THAT TIME AS A PROFESSOR. I WANT HIM TO MOVE GHANA FURTHER IN TERMS OF DEVELOPMENT ESPECIALLY EDUCATION. DR. BAWUMIAH NAME IS STILL CAVE IN CANADA FRAZER INSTITUTE.