Ghana Must Build Fiscal Buffers Beyond IMF Programme – Analyst
By: Solomon Nartey Tetteh
Economic analyst Emmanuel Boateng has cautioned that Ghana must strengthen its fiscal buffers and maintain discipline beyond the International Monetary Fund (IMF) programme to guard against future debt distress.
Speaking on Business Breakfast on Zed 101.9FM, Mr. Boateng acknowledged that Ghana’s current fiscal position shows some improvement compared with recent years. However, he warned that the gains remain fragile and must be consolidated to ensure long-term sustainability.
“Currently, our fiscal buffer is a bit okay, especially when you compare it to our own performance in recent times. But the report warns of debt distress risks, and that is the key point we must focus on,” he said.
According to him, Ghana needs to deliberately build fiscal reserves to cushion the economy against shocks.
He stressed the importance of improving import cover and establishing a sovereign wealth fund to manage any future commodity windfalls.
“We need to look at the performance of our import cover and also establish a sovereign wealth fund for commodity windfalls, should any happen to us. That is how we maintain sustainability beyond the IMF programme,” he noted.
The analyst observed that the improved fiscal discipline currently being witnessed is not unusual, particularly at a time when Ghana is nearing the end of its IMF-supported programme.
“What we are seeing today in terms of government performance is not novel. This is what typically happens when the IMF is in town, especially towards the end of a programme. These are things we often see,” he explained.
However, Mr. Boateng raised concerns about what happens after the IMF exits. He questioned whether the same level of fiscal restraint would be maintained once external oversight is removed.
He therefore urged policymakers to institutionalise fiscal discipline and reforms, warning that failure to do so could reverse the modest gains made under the IMF programme.
“We need to maintain this sustainability beyond the IMF programme,” The analyst stressed.
