Frequently asked questions as gov’t engages IMF

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The Ministry of Finance has provided answers to some questions regarding the move to go to the International Monetary Fund (IMF) for support.

For instance, regarding whether or not the Free SHS will be affected by the programme, the Ministry said it will not be affected.

It further explained in a document that IMF programmes are flexible in response to evolving circumstances.

Ultimately, it said, the IMF encourages governments in their programme design to protect the poor or vulnerable groups from the impact fiscal adjustment.

“Free SHS, the School Feeding programme, among others are good social intervention programmes and it is the lack of financing and unsustainable debt burdens that could constrain a government’s ability to maintain its level of spending, including social or investment spending.

“In our situation, the IMF may ask Ghana to consider curtailing lower priority or non-productive spending (such as “white elephant” projects) as part of its fiscal adjustment but to preserve priority social spending, including on health and education.

“The objectives are typically aimed at providing a social safety net for the poor and ensuring that investment spending boosts the economy at a critical time. However, Government in its Enhanced Domestic Programme has started a review of these programmes to see
how best they can be optimized and become more efficient.”

Source: 3news.com|Ghana

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