Minority: Take steps to reduce expenditure

The Minority in Parliament has admonished the government to take steps to reduce expenditure to avoid seeking another bailout from the International Monetary Fund (IMF) in future.

“The government must take full responsibility for the reckless management of the economy that has led Ghana to the International Monetary Fund because there is no justification from the government about the reasons for going to the IMF will wash,” they noted.

The Minority maintained that President Nana Addo Dankwa Akufo-Addo, Vice President Dr. Mahamudu Bawumia and the Minister of Finance, Ken Ofori-Atta should take responsibility for incompetently managing the economy to suffocate debt levels which had necessitated the retreat for the country to request an agreement with the Fund for restructuring of debt.

Addressing the media in Parliament, Haruna Iddrisu, the Minority Leader in Parliament, stressed on the government to take responsibility for their reckless and irresponsible borrowing and their unjustified and profligate expenditure, which had led the nation to seek a bailout from the IMF.

He indicated that the government should take responsibility for incompetently managing the economy to suffocate debt levels which had necessitated the retreat for the nation to request an agreement with the Fund for the restructuring of her debt.

But Mohammed Awal, the Minister of Tourism, mounted spirited defense for the government’s decision to seek balance of payment from the IMF and was convinced the move was best for the country and assured that Ghana would come out of the Fund programme “stronger”.

He insisted that going to the IMF was the best decision to take to seek help especially at the current situation and have access to international funds to continue to grow and develop the economy and make the country sustainable again.

A delegation from the IMF has begun talks with the government over an economic support and assistance package and the government’s decision to resort to the IMF comes after its controversial revenue generation policy, the Electronic Transfer Levy, failed to generate the needed revenue targets.

The economy is in distress as it currently has total public debt stock of GH¢391.9 billion, as of the end of the first quarter of 2022 and the cedi is also the worst-performing African currency, having weakened 22 percent against the dollar this year and efforts to tame rising inflation rates have also not been successful.

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