Government Prepares for Crucial IMF Talks as 2025 Budget Looms

Accra, Ghana - 10 Feb, 2025 - Ghana's government is bracing for crucial talks with the International Monetary Fund (IMF) this week, as the country prepares to unveil its 2025 budget.

The discussion, scheduled for 10 Feb, 2025 - 14th Feb, 2025, will be led by the IMF Mission Chief for Ghana, Stephanie Roudet.

The IMF will scrutinize the government's plans to scrap several contentious taxes, including the E-levy, betting tax, and COVID-19 levy.

The fund will seek assurances that the removal of these levies will not undermine Ghana's revenue targets or derail its economic recovery. Ghana is currently under an IMF-backed $3 billion Extended Credit Facility (ECF) program, which aims to support the country's economic stability and growth.

However, the government's plans to cut taxes have raised concerns about the potential impact on revenue collection. Ghana's Finance Minister has assured that the government will offset revenue losses through other means, but the IMF will seek concrete measures to ensure that the country's fiscal consolidation efforts remain on track.

Meanwhile, Ghana's energy sector debt, estimated to exceed $2 billion, remains a major concern. The IMF will push for a clear roadmap to address the structural inefficiencies in the energy space, improve cost recovery, and ensure a sustainable financial framework for the country's energy industry.

The outcome of the talks will have significant implications for Ghana's economy, which is projected to grow by 4.4% in 2025, according to the IMF. The fund's approval is crucial for Ghana to access international capital markets and secure much-needed investment to drive economic growth.

Ghana's government is bracing for crucial talks with the International Monetary Fund (IMF) this week, as the country prepares to unveil its 2025 budget. The IMF will scrutinize the government's plans to scrap several contentious taxes, including the E-levy, betting tax, and COVID-19 levy.

The fund will seek assurances that the removal of these levies will not undermine Ghana's revenue targets or derail its economic recovery. Ghana is currently under an IMF-backed $3 billion Extended Credit Facility (ECF) program, which aims to support the country's economic stability and growth.

However, the government's plans to cut taxes have raised concerns about the potential impact on revenue collection. Ghana's Finance Minister has assured that the government will offset revenue losses through other means, but the IMF will seek concrete measures to ensure that the country's fiscal consolidation efforts remain on track.

Meanwhile, Ghana's energy sector debt, estimated to exceed $2 billion, remains a major concern. The IMF will push for a clear roadmap to address the structural inefficiencies in the energy space, improve cost recovery, and ensure a sustainable financial framework for the country's energy industry.

The outcome of the talks will have significant implications for Ghana's economy, which is projected to grow by 4.4% in 2025, according to the IMF. The fund's approval is crucial for Ghana to access international capital markets and secure much-needed investment to drive economic growth.

Source: Lead News Online