IMF exit: We must manage expenditure, revenue not to go back- Economist

By Justice Kofi Bimpeh
Economist Professor Peter Quartey

Economist Professor Peter Quartey says for Ghana not to go back to the International Monetary Fund, IMF, again we need to manage our expenditure and revenue better in 2020.

According to him, we need to grow our revenue base because currently, we are always recording revenue shortfalls.

“The first thing is how do we manage our resources, our revenue especially. We need to grow the revenue base. At the moment we are always recording revenue shortfalls so what innovative thing can the government use to raise revenue to be it from the informal sector or broadening the tax base," he said.

Some economists have pointed out that governments overspend in election years, creating economic difficulties that compel Ghana to back to the IMF for a bailout.

After the final review by the IMF, Ghana will on April 3, 2019, exit the programme.

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Speaking to Citi FM, Prof. Quartey said it time for Ghana to improve its tax collection to help spend in critical sectors of the economy.

“I believe tax efficiency is very key so that we stay focused so we don’t go back to the IMF or we don’t borrow and reach debt sustainable level” he stressed.

He was positive these actions if keenly followed will not return Ghana to the IMF any time soon.

“And then also our expenditure, I believe we spend but then we have to spend prudently. Where it is not necessary we need to cut on expenditure especially on the wage bill. We need to rationalize how much we are paying”, He stated.

Read also: Final Disbursement: IMF approves $185.2m for Ghana Ghana News