Minority predicts Ghana's return to IMF | Policy

The minority in Parliament said the nation would return to the International Monetary Fund (IMF) for a bailout given the country's financial challenges and the high level of its public debt.

They said the increase in the country's public debt, from $ 120 billion in December 2016 to $ 204 billion in June 2019, and that the declining foreign exchange reserve would force the government to call on the IMF.

"It would not be surprising that Ghana is asking for a rescue from the IMF less than two years after the end of a similar program," said the minority.

Cbadiel Ato Forson, a senior member of the Finance Committee, told a media meeting in Parliament Tuesday that the minority's badessment of the mid-term budget review exercise presented to Parliament by the Minister of Finance earlier in the week.

Mr Forson said the mid-year budget clearly showed that public finances were in a desperate situation and that the use of additional fiscal measures indicated difficult times.

He described the policies adopted by President Akuffo-Addo as populist, adding that they had reached a complete cycle and that they were defeating all the gains from fiscal consolidation before the NPP took office. .

"It has become clear that the nuclear power plant does not intend to keep its promises on borrowing and public debt, imposition of taxes and adjustments of the price of gasoline. "

Mr. Forson said the mid-year budget presented by the Minister of Finance foreshadowed difficult times for all Ghanaians.

He regretted that less than a year after the exit of the Ghana IMF program, the country's public finances were seriously derailed.

He urged the Akuffo-Addo government to change course otherwise they would plunge the economy into much bigger challenges.

Mr John Jinapor, former deputy minister of electricity, said the minority had the intention to oppose the increase in taxes levied by the government on the oil sector.

He said that there was no justification for imposing new taxes, arguing that the reasons given for the adjustments were unsustainable.

"You can not oppose the Energy Tax Act (EPA) two years ago and suddenly become a promoter," he said.

Mr Jinapor said the government had not taken into account an amount of 900 million GH on levies of 1.5 billion GH into the HALS, leaving only 600 million GHC in the account.

He added that in the context of the ESLA increases, an average increase of 25% was imposed on the support tax for the production of electricity and infrastructure, the road fund financing tax and the price stabilization tax. and recovery.

He added that once the new taxes came into effect, consumers would pay almost 1 GH for a gallon of gasoline and diesel, as well as 1.7 GH for a 14 kg bottle filled with water. ; gasoline.