Mid-Year Review: ‘the risk of Ghana returning to IMF for a bailout is high’ – Minority cautions

Ghana, according to the Minority Caucus in Parliament syand the risk of returning to the International Monetary Fund (IMF), for a bailout due to bad economic management by the current government.

To them, the country is confronted with fiscal challenges and high level of public debt.

Addressing the media in Parliament, the Ranking Member on the Parliamentary Select Committee on Finance and the Spokesperson on Finance, Hon. Cassiel Ato Baah Forson, disclosed that the country is confronted with numerous hardship and consumed with unprecedented public debt.

“It would not come as a surprise if Ghana seeks a bailout from the IMF less than two years after exiting a similar programme that the current administration proudly touted as an achievement”, he explained.

His comments follow the 2019 Mid-Year Review of the Budget Statement and Economic Policy of the Government and Supplementary Estimate for the 2019 Financial Year, presented to the Plenary by the Finance Minister, Mr. Ken Ofori-Atta, on Monday, July 29, 2019.

Also speakinh at the media encounter at Parliament, Ranking Member, who doubles as the Member of Parliament for Ajumako-Enyan-Essiam, added that the policy measures introduced in the Mid-Year Review indicates that the economy is in dire crisis.

“The Mid-Year Budget clearly showed that the public finances are in dire straits and the resort to additional tax measures is an indication of the troubling times that we are in”, the Ranking Member opined.

Meanwhile, Hon. Ato Forson informed the media that increasing external vulnerabilities and exposures culminated led to the rapid depreciation of the cedi during the first quarter of the year, 2019.

Further reiterated that apart from the services sector, which showed an increase in growth from 5.8 percent in the last quarter of 2018 to 7.2 percent in the first quarter of 2019, all other sectors saw a decline in growth.

Story By: Delali Gavor

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