The Minority in Parliament has urged the International Monetary Fund (IMF) to thoroughly scrutinise the 2025 budget, citing credibility issues that could worsen Ghana’s economic situation.
The group noted that while the government planned to return to the bond market, it failed to acknowledge the progress made in reducing Ghana’s debt-to- GDP ratio.
Addressing a press conference in reaction to the budget presentation on Tuesday, Ranking Member of the Finance Committee and former Finance Minister, Dr Mohammed Amin Adam, expressed concerns over the government’s economic projections.
He said Ghana’s debt-to-GDP ratio has dropped from 81 per cent to 61.8 per cent by the end of 2024 due to skilled debt management strategies.
Dr Adam argued that this figure is even lower than the pre- COVID-19 level of 65.7 per cent in 2019.
However, he warned that the government’s borrowing trend could reverse these gains.
“The government’s projection of fiscal balances for 2025 makes this budget not credible and requires serious scrutiny by the IMF and the people of Ghana.
“The way they are borrowing, we are very worried they may return us to unsustainable debt levels,” Dr Adam said.
He condemned the government’s decision to re-enter the bond market, stating that it coincided with an announcement of an elevated fiscal deficit, which has negatively impacted investor confidence.
Dr Adam pointed out that Ghana’s sovereign bond spreads has widened after the budget presentation, with Bloomberg reporting a decline in Ghana’s dollar bonds.
He also accused the government of manipulating fiscal data, suggesting that without the inclusion of a reported GH¢49.2 billion in the fiscal framework, the overall deficit would be 3.4 per cent instead of the announced 7.6 per cent.
Dr Adam warned that if the IMF review fails due to inaccurate data, it could further harm Ghana’s standing in international markets.
He recalled a past instance where Ghana was fined $39 million by the IMF for misreporting economic data under a previous NDC administration.
Dr Adam cautioned the Finance Minister, Dr Cassiel Ato Forson, to avoid similar missteps.
Meanwhile, Ranking Member of the Economy and Development Committee, Mr Kojo Oppong Nkrumah, criticised the budget for failing to address rising food prices, fuel costs, and unemployment.
He argued that the absence of concrete measures to tackle these issues would further strain households and businesses.
“Spare parts and fuel prices will not come down. The 2025 budget offers no hope,” he stated, and asked the government not abandon the Agenda 111 hospital project due to political considerations.
Additionally, Chairperson of the Public Accounts Committee, Abena Osei Asare, described the budget as unrealistic, questioning why the Finance Minister did not highlight growth in the construction and manufacturing sectors.
She pointed out that during former President John Mahama’s tenure, the economy saw a decline, while the current government managed to achieve a 5.7 per cent GDP growth in 2024.
“It is sad that this government is now projecting to grow at 4.4 per cent in 2025 when the government being described as bad grew at 5.7 per cent,” Ms Asare said.
The Minority stressed that the IMF should ensure transparency in Ghana’s fiscal data to prevent the country from falling into another economic crisis.
BY RAISSA SAMBOU