IEA: There's urgent need for major fiscal reforms
The Institute of Economic Affairs (IEA) has underscored the urgent need for major fiscal reforms to bring Ghana's economy back on track.
These reforms are expected to include a combination of tax hikes and spending cuts.
At a press conference held in Accra on Wednesday, June 12, 2024, Dr John Kwabena Kwakye, the IEA's Director of Research, voiced concerns about Ghana's policy credibility.
He warned that without significant expenditure reductions, the market's confidence in the country's economic policies might wane.
"Restoring the economy to normalcy would normally require severe fiscal adjustments requiring tax increases and expenditure cuts, which would entail economic hardships," Dr Kwakye stated.
"Lacking the boldness to take these measures knowing that the markets may not trust our own policy credibility, we turn to the IMF for financial bailout," Dr Kwakye added.
Dr Kwakye elaborated that such bailouts are usually accompanied by stringent conditions. "The bailout is normally supported by a programme that is invariably conditioned on stringent and often socially costly measures, including expenditure cuts, tax increases, removal of subsidies, increases in utility tariffs and public sector employment freeze,” he explained.
Source: classfmonline.com
Trending News
Agona West MP Cynthia Mamle Morrison denies reports of rescinding independent candidacy
18:20Bawumia belittles NDC's manufactured 'Majority' in Parliament
12:12Bawumia campaign accuses Mahama of being out of touch with current affairs
09:47Bishop Salifu Amoako, wife, 1 other person charged with allowing 'unlicensed person to drive', granted bail
22:31EC to Finalise certified voter roll for Dec. 7 polls by November
18:55Dec. 7 polls: Vote NPP out NPP for ‘destroying Ghana’ – Ato Forson tells Mankessim residents
11:54Firewood & charcoal: The silent killer in our kitchens – Rev. Mireku
17:44You've disgraced me with your unwarranted attack on journalist – Salifu Amoako tells congregation
14:42PRINPAG launches Code of Ethics to strengthen journalism standards in Ghana
11:12Contact NDC comms team before publishing self-designed NDC ads, paraphernalia – NDC to sympathisers
20:20