Keep fuel subsidies temporary and well-targeted or risk fiscal damage – IMF warns Ghana
The International Monetary Fund (IMF) has cautioned the government that its recent fuel subsidy measures must remain temporary and carefully targeted to avoid undermining Ghana’s fiscal gains.
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.
