IMF backs slower fiscal tightening for Ghana from 2027 to allow more development spending
The International Monetary Fund (IMF) says Ghana can adopt a more flexible fiscal path from 2027, allowing increased development spending while still remaining on course to meet its long-term debt reduction targets. In its latest Article IV Consultation and proposed Policy Coordination Instrument (PCI) report, the Fund said improvements in Ghana’s debt position and macroeconomic stability provide…
The International Monetary Fund (IMF) has cautioned Ghana's government that its recent fuel subsidy measures must be temporary and well-targeted to avoid undermining the country's fiscal gains. The IMF warned that prolonged fuel subsidies could weaken government revenue, widen the fiscal deficit, and undermine Ghana's ongoing economic recovery program.
The warning comes as the government announced a GH¢2 subsidy on every litre of diesel for August, a move intended to cushion consumers from rising fuel costs. The IMF emphasized that such subsidies should not become a permanent policy tool, as they could have negative impacts on the country's macroeconomic stability.
Brief written by urgent.news from MyJoyOnline Ghana's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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