https://www.myjoyonline.com/imfs-second-review-focuses-on-election-spending-debt-and-revenue-measures/-------https://www.myjoyonline.com/imfs-second-review-focuses-on-election-spending-debt-and-revenue-measures/

Ghana's ongoing second programme review with the International Monetary Fund (IMF) has entered its second week, with discussions primarily centred around tax efficiency and the avoidance of fiscal slippages in this election year.

The IMF mission staff from Washington DC are presently in Ghana for a two-week assessment of the bailout package, which includes deliberations on the disbursement of the third tranche of $360 million under the credit facility.

The review is slated to conclude on Friday, April 12, 2024.

Of particular concern to the IMF is how Ghana can maintain economic stability amidst increased spending during the 2024 elections.

Past election cycles have seen substantial budget overruns due to reckless spending, contributing significantly to economic challenges.

Negotiations with bilateral creditors and Eurobond holders regarding restructuring external debts are also under scrutiny during the review. Analysts have expressed worries about the potential negative implications of delays in reaching agreements on these matters.

Read also: Approval of IMF second review of Ghana’s programme to trigger release of 3rd tranche of $360m – Finance Minister

Revenue mobilisation efforts are another key focus, especially in light of the suspension of some tax handles like VAT on electricity.

Discussions are underway on alternative revenue sources to offset the resulting GHS1.8 billion shortfall, potentially including new tax measures or revisions to existing ones.

These discussions highlight Ghana's commitment to addressing economic challenges, maintaining fiscal discipline during an election year, and upholding its commitments under the IMF programme.

The government is confident in passing the IMF programme review, aiming to meet all structural targets to unlock the third tranche of IMF cash by the end of June.

When the review's conclude, the mission staff will return to Washington DC with their status report, subject to approval by the IMF Board.

The next review of Ghana's IMF programme is scheduled for November 2024, marking the last of the two sets of reviews for the year.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.