Ofori-Atta’s measures are IMF-like – Economist

An economist, Adu Sarkodie, has said the new fiscal measures introduced by the Finance Minister, Ken Ofori-Atta, are the same measures that the International Monetary Fund (IMF) would have given to Ghana if the country had gone to the Bretton Woods Institution for support.

In his view, the new measures place the government in the position that indicates that they are listening to the concerns of Ghanaians against the introduction of the E-levy policy proposal.

“It is more of IMF programme on a shadows because of the expenditure containment approach that they are trying to introduce,” he said in an interview with the media while analysing the new fiscal measures.

“There are two or three things that he touched that is to restore confidence. Remember that they went to the town hall meeting to be able to pass the E-levy. Most of the people who have spoken against the E-levy are actually telling you their frustration to the expenditure by government,” he added.

“So you can see the posture of government now. It is to say they have listened to Ghanaians and these are the things they have done to show that they share the concerns with them, that they are also part of the difficulty that we find ourselves in and also to restore confidence in the international community. These are measures that if we had gone to the IMF they would have given to us,” Dr. Sarkodie continued.

The measures

Mr Ofori-Atta last week announced that, with immediate effect, the government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year.

He said this will affect all new orders, especially 4-wheel drives.

“With immediate effect, Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year. This will affect all new orders, especially 4-wheel drives. We will ensure that the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period,” he said.

“Again, with immediate effect Government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels; government will conclude on-going measures to eliminate “ghost” workers from the Government payroll by end December 2022.

“Discretionary spending is to be further cut by an additional 10%. The Ministry of Finance is currently meeting with MDAs to review their spending plans for the rest of the three (3) quarters to achieve the discretionary expenditure cuts; ii. these times call for very efficient use of energy resources. In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st April 2022,” he added.