Ghana risks returning to IMF again – Fifi Kwetey
Former Deputy Finance Minister, Fifi Kwetey has warned the country risks heading back into an International Monetary Fund (IMF) programme due to what he describes as bad economic management by the Nana Addo-led government.
According to him, the announcement of tax increases in the government’s 2019 mid-year budget review indicate more challenging times ahead for Ghanaians.
His comments come on the back of the mid-year budget review and supplementary budget presented to parliament which proposes an increment in prices of petroleum products and communication service taxes.
In an interview on Citi TV monitored byThe Ghana Report, Fifi Kwetey said, the proposed increase in fuel prices and the CST are major developments that will cause a strain on the finances of Ghanaians.
“The hardship on them is going to increase. For example, a gallon of petrol is actually going to see almost 1 cedi in addition. That is massive and it is going to affect everything, not just transport; food is going to be affected. Much more hardship is going to come. In this day and age when you have hardships, Ghanaians take a lot of comfort in going on social media, laughing at jokes and all that and that one as well has now seen an increase in tax,” he said.
He added, “I think generally, Ghanaians need to have a massive awakening that our friends have just danced around and today, the reality, they cannot handle.”
Addressing the press at the Minority’s response to the 2019 budget review, Ranking Member on the Finance Committee, Cassiel Ato Forson, said the policy measures introduced in the mid-year review statement indicates that the economy is in dire straits.
“Given the fiscal challenges confronting the country and the high level of public debt, it would not come as a surprise if Ghana seeks a ‘bailout’ from the IMF less than two years after exiting a similar programme that the current administration proudly touted as an achievement.
The Mid-year budget clearly showed that the public finances are in dire straits and the resort to additional tax measures is an indication of the troubling times that we are in.” he said
Ato Forson asked Ghanaians to expect more hardships with the introduction of new taxes and an increment in some existing ones.