Tax cuts, revenue administration reforms, energy sector debt management, expenditure controls and exchange rate stabilization are the issues dominating the government’s discussions with the International Monetary Fund (IMF). The ongoing five-day engagements – running from February 10 to February 14 will be heavy on Ghana’s economic outlook and policy direction for the 2025 budget.
The government plans to eliminate several major revenue measures, including the E-Levy, betting tax, and COVID-19 levy, to alleviate fiscal pressures and reduce dependence on imported goods. These changes are part of a larger strategy aimed at strengthening macroeconomic stability and improving Ghana’s economic outlook under the IMF-supported program. The discussions are being led by IMF Mission Chief for Ghana, Stéphane Roudet, who will evaluate the country’s progress and collaborate with government officials to refine fiscal policies in preparation for the 2025 budget presentation.
Key institutions involved in the negotiations include the Bank of Ghana, the Ghana Revenue Authority, and the Controller and Accountant General’s Department.
Citi Business News understands that the outcome of these talks could significantly influence Ghana’s policy direction, balancing the need for fiscal consolidation with measures aimed at spurring economic growth. Market analysts urging the government to prioritise fiscal prudence by focusing on expenditure rationalisation to address the budget deficit.
The fiscal deficit is projected to narrow to 4.2% in 2025 as fiscal consolidation efforts continue. The government has already signalled cost-cutting measures by reducing the number of ministers to 60 and banning non-essential foreign travel for appointees.
By: Nii Larte Lartey
