Fiscal discipline key after IMF programme

The Member of Parliament for Ekumfi, Ekow Othniel Kwainoe, has called for discipline and prudent economic management to sustain Ghana’s recent economic recovery following the country’s successful completion of its programme with the International Monetary Fund.

His remarks follow the government’s announcement that Ghana had exited the IMF bailout programme ahead of schedule and would now transition to a non-financial policy support arrangement — a move the government says signals renewed macroeconomic stability and progress toward debt sustainability.

Speaking on Citi FM’s News Digest with Samuel Ackom on Saturday, May 16, Dr Kwainoe stressed that the country’s next challenge would be preserving the gains achieved under the programme.

“What is left is to sustain the economic gains,” he said, pointing to government assurances that fiscal discipline would remain a priority.

According to the Ekumfi MP, Finance Minister, Dr. Cassiel Ato Forson has committed to preventing fiscal slippages, excessive borrowing and uncontrolled spending to ensure the economy remains stable.

“He has made it clear that he will ensure that issues of fiscal slippages, excessive borrowing and spending are curtailed to the extent that we work within the framework of the government’s budgeted expenses,” Dr Kwainoe stated.

He noted that current government spending appears to be aligned with approved budgetary limits, describing it as a positive signal for the economy.

“So far, you can see that everything the government is doing is within the framework of the budget,” he added.

Dr Kwainoe further emphasised the need to maintain the “building blocks” that have helped stabilise the economy, expressing optimism that Ghana could continue on a path of recovery if fiscal discipline is maintained.

In a statement announcing the IMF exit, Presidential Spokesperson and Minister for Government Communications, Felix Kwakye Ofosu, attributed the turnaround to aggressive fiscal and structural reforms implemented by the administration of President John Dramani Mahama after the programme encountered setbacks at the end of 2024.

According to the statement, the government introduced frontloaded fiscal consolidation measures, expenditure rationalisation and broader reforms aimed at restoring investor confidence, stabilising the economy and steering Ghana toward long-term debt sustainability.

Source: citinewsroom