A Senior Fellow at the Institute of Economic Affairs (IEA), Dr. Vladimir Antwi-Danso, has urged President John Mahama to implement decisive corrective actions to avert Ghana’s return to the International Monetary Fund (IMF) following the conclusion of the current program.
Dr. Antwi-Danso asserts that the recurring dependence on the IMF is primarily a result of excessive government expenditure—especially during election years—which compromises fiscal discipline and exacerbates economic instability.
“The president has indicated that this is a legacy term. If it is indeed a legacy term, then I believe he must rectify the situation to prevent us from going back. This has become a routine occurrence; this is the 17th instance, and there is no sign that this will be the final one. The spending spree, particularly in election years, is the cause,” he stated.
Dr. Antwi-Danso highlighted that such expenditures frequently do not foster growth, cautioning that borrowing for consumption instead of investment only intensifies the nation’s financial vulnerabilities.
“In election years, we disregard fiscal prudence and spend recklessly, which does not yield returns. It is purely for consumption. We borrow for consumption purposes,” he remarked.
He urged the Mahama administration to implement stringent fiscal discipline and pursue structural reforms that would enhance economic governance and diminish reliance on external assistance.
Ghana is presently executing a $3 billion IMF-supported program designed to restore macroeconomic stability and achieve debt sustainability. This program is set to conclude next year.
Nevertheless, some experts, including Daniel Kwadwo Owusu, the Country Managing Partner of Deloitte Ghana, have suggested extending the program by one or two years, citing the progress achieved thus far and the necessity to solidify economic gains.
