Finance Minister Dr. Cassiel Ato Forson has disclosed that Ghana’s $3 billion IMF-supported program is off track, as the country has failed to meet key Quantitative Performance Criteria (QPCs) and structural benchmarks.
Speaking on Point of View with Bernard Avle on Channel One TV, Dr. Forson attributed the setbacks to the previous administration, highlighting that critical targets, including inflation control, were missed. He noted that the program had projected an inflation rate of 15%, but the actual figure stood at 23.8%.
“Let me start with the primary balance, which is a key QPC. We were supposed to achieve a surplus of 0.5% of GDP. However, the data shows a deficit of 3.9% of GDP. This is the primary anchor for the IMF program, and we have missed it. Inflation: There is a monetary policy consultation clause in the IMF program, and we were supposed to achieve 15%. The actual outturn is 23.8%, triggering a discussion with the IMF on monetary policy.”
Dr. Forson further revealed that the government also failed to meet its social spending obligations, another key IMF requirement. Additionally, structural benchmarks, including bills that were supposed to be presented to Parliament, were not submitted.
“In fact, a third major QPC that we missed has to do with social spending. We failed even on social spending. So all three main QPCs were missed, and the structural benchmarks, including bills that were supposed to be sent to Parliament, were not sent. They missed all of them. So how can you say the IMF program is on track?”
Dr. Forson emphasised that while initial assessments suggested the program was progressing well, current data paints a different picture.
“When we took office and based on all that we have seen and the data before us… at the time, we all knew the IMF program was on track, but today it is not on track,” he stated.
The IMF review is expected to focus heavily on these missed targets as Ghana navigates the next phase of its economic recovery plan.
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