Ghana has expenditure deficit of $61b, while seeking $3b IMF deal

Ghana’s expenditure plan for the 2023 fiscal regime has a deficit figure of $61 billion revealing how meagre the $3 billion IMF deal could alleviate the economic woes of the country.

At a breakfast meeting, some members of the Ghana National Chamber of Commerce and Industry (GNCCI) in the Western Region have asked the government to reconsider its decision on the Domestic Debt Exchange Programme to save the country of future implications and hardships.

The businesses argued that the activation of the DDEP had a negative impact not only on individuals and banks but a rippling effect on investor confidence, lay-offs of staff, which would create a surge in unemployment figures, thus, heighten social insecurity concerns.

The CEOs Breakfast, sponsored by the Bank of Africa, was used as a platform to engage business owners to get their concern on national economic issues and solicit inputs for duty bearers to properly align in improving the general well-being of the country.

Mr Paul Mendes, a businessman lamented how he had to lose an investor from South Korea because of the current economic conditions and queried: “whom are we pleasing as a nation…the will of the citizens or dictate of systems such as IMF?”

Mr Kofi Abaidoo, a chartered accountant, called for capital maintenance in all government interventions to maintain a liquid position as a country.

He described the DDEP as an instrument shredded in hardship to break the camel’s back in Ghana’s economic and fiscal policy regime …” a situation the nation must guard against.”

Meanwhile, Ghana’s expenditure plan for the 2023 fiscal regime has a deficits figure of $61 billion revealing how meagre the $3 billion IMF deal could alleviate the economic woes of the country.

Mr Evans Asare, An Associate Director, Deal Advisory of the KPMG proposed that the country turned attention to boosting local industries, cutting down on public sector expenditure, diversified export, and value addition to raw agricultural materials to increase the income level.

There is also the need for strategic decisions that would inure to the benefits of the generality of Ghanaians.

Mr Asare mentioned that the impact of the DDEP should it be mooted, would have drastic impacts on banks as it would affect cash flows and slow many businesses.

The KPMG Deal Advisor encouraged businesses to form strategic partnerships, leverage on each other’s strength to thrive.

He said the DDEP presented extended maturity on investment, thus, advised that businesses ensured that, “we have proper board systems or structures to handle liquidity challenges.”

Mr Emmanuel Asare, the Tax Manager, at the KPMG urged businesses to brace themselves for the new tax conditions under the Growth and Sustainability Living and the increase in the VAT, which now stood at 21.9 percent.

Mr Lord Kwame Segbeawu, the Western Regional Chairman for the GNCCI said as a chamber and an autonomous business support organization, it would continue to serve as a link between established businesses, the emerging sector, and the government and offer members a myriad of business support services.

Source: GNA