IMF team to assist govt in crafting 2025 budget in February- Dr. Forson

Minister of Finance, Dr. Cassiel Ato Baah Forson, has announced that a staff team from the International Monetary Fund (IMF) will visit Ghana from February 10th to 14th, 2025, to aid in aligning the country’s 2025 budget with the requirements of its $3 billion Extended Credit Facility (ECF) program.
The visit forms part of ongoing discussions on the three-year loan-supported program aimed at restoring economic stability.
“The IMF will be in town on the 10th to the 14th of February for us to look at the budget preparation,” Dr. Forson said during a working visit to the Ghana Revenue Authority (GRA) and the Controller and Accountant-General’s Department (CAGD) on January 23, 2025.

Targeting revenue mobilization
As part of the agreement with the IMF, Ghana is tasked with raising additional tax revenue equivalent to 0.6% of its Gross Domestic Product (GDP) in the coming fiscal year.
The Finance Minister directed the GRA to develop strategies for achieving this target, emphasizing the importance of maximizing revenue mobilization to reduce the fiscal deficit.
“Look at better ways to ensure additional revenue is mobilized,” Dr. Forson urged the GRA leadership. He also requested projections for 2025 that would help identify areas requiring adjustments to meet revenue targets.

Scrutinizing expenditure
At the CAGD, Dr. Forson emphasized the need for rigorous scrutiny of government spending in accordance with the Public Financial Management Act, 2016 (Act 921).
The Minister pledged that expenditure going forward would focus on projects that promote inclusive growth and economic transformation.
“Your work is to ensure that whatever we ask you to pay, you review it, and if it meets your law, you pay,” he told the staff of the CAGD. “We’ll choose the quality of expenditure at the Ministry of Finance and ensure that it transforms our country.”

Debt sustainability measures
Ghana’s debt has reached a staggering GHS742 billion as of June 2024, with external debt accounting for 51.7% and domestic debt making up 43.3%.
Under the IMF program, Ghana is implementing reforms to restore debt sustainability.
Fiifi Fiavi Kwetey, General Secretary of the National Democratic Congress (NDC) and a former Deputy Minister of Finance, accompanied Dr. Forson on the visit.
He underscored the importance of synergy between the GRA and CAGD to address the country’s debt challenges.
“As you are aware, we already have massive issues in debt, and that’s always coming up because of the dislocation between how much we are earning and how much we are spending,” Mr. Kwetey noted.
He stressed the urgency of addressing these issues to revive and grow the economy.

Commitment to financial reforms
The Director-General of the CAGD, Mr. Kwasi Adjei, assured the Finance Minister of the department’s commitment to improving financial systems.
He emphasized their role in subjecting expenditure to thorough analysis and ensuring accountability.
“We will play our part as a department and make sure that transaction releases are made, subject to our analysis, and do that part with payment,” Mr. Adjei said.

Preparing for a resilient economy
The Finance Ministry’s collaboration with the IMF and other key stakeholders is expected to chart a path toward economic recovery.
Dr. Forson’s emphasis on revenue mobilization, fiscal discipline, and transformative expenditure reflects the government’s commitment to addressing Ghana’s pressing economic challenges.
With the IMF team’s upcoming visit, the government aims to ensure that the 2025 budget aligns with the broader goals of fiscal sustainability and economic resilience, setting the tone for a more stable and inclusive future.