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IMF backs slower fiscal tightening for Ghana from 2027 to allow more development spending
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MyJoyOnline
The International Monetary Fund (IMF) says Ghana can adopt a more flexible fiscal path from 2027, allowing increased development spending while remaining on course to meet its long-term debt reduction targets.
The IMF said the revised approach would create additional space for investment in priority sectors while maintaining Ghana’s commitment to reducing public debt.
"The lowering of the fiscal primary surplus will be supported by an ambitious package of fiscal structural reforms to contain quasi-fiscal pressures and safeguard debt sustainability," the report stated.
"The authorities viewed the more relaxed fiscal stance as justified by strong policy action and sustained improvement in debt dynamics," the IMF said.
The government indicated that the additional fiscal space would be directed towards priority development programmes and job creation while maintaining commitment to fiscal reforms.