IMF deal: Electricity tariff hikes, tax reforms key conditions in securing programme – Ghana Finance Minister

Finance Minister, Ken Ofori-Atta, has outlined five key measures necessary for the government to pursue in order to secure an International Monetary Fund (IMF) support programme.

They are electricity tariff hikes which have brought the cumulative increase to 60% since August 2022 and Comprehensive set of revenue-enhancing measures, including increase in the Value Added Tax rate and the review of the Electronic Transaction Levy (E-levy).

The rest are the enactment of an ambitious 2023 Budget, with a frontloading of the fiscal consolidation programme, continued monetary policy tightening to bring inflation under control and comprehensive set of structural reforms, notably public expenditure review.

These were captured in the Investors Presentation by the Finance Minister and supported by the Governor of the Bank of Ghana, Dr. Ernest Addison.

With regard to fiscal and debt sustainability, the Finance Minister said the government has undertaken fiscal adjustment with revenue and expenditure measures to improve debt sustainability and restore macroeconomic stability.

This is expected to address structural bottlenecks including contingent liabilities of State Owned Enterprises, commitment controls and arrears accumulation as well as domestic revenue mobilization.