Focus on revenue, not spending cuts, IMF tells Ghana
Further spending cuts are not sustainable in the country as government capital spending is already low at 3% of GDP
Accra — Ghana needs to improve revenue collection and can’t keep reducing spending on capital items to achieve its fiscal targets, the International Monetary Fund (IMF) has said. That’s one of the recommendations made by the Washington-based lender during a review of the country’s $1bn extended credit-facility programme, country representative Natalia Koliadina said. Under the plan, which started in April 2015 and is due to end in December, Ghana committed to implementing reforms to rein in chronic over-spending and improve economic governance. "Fiscal consolidation has to be revenue-based," Koliadina told reporters in the capital, Accra. "Further spending cuts are not sustainable as government capital spending is already low at 3% of GDP."
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