Flagbearer of the New Patriotic Party, Dr. Mahamudu Bawumia has asserted that his proposed economic policies are in alignment with the International Monetary Fund (IMF) programme currently being implemented.
Some economic analysts have expressed concerns that key aspects of the Vice President’s policy framework, including the scrapping of the e-levy, the introduction of a tax amnesty, and the flat tax regime could potentially disrupt Ghana’s ongoing financial stabilization efforts under the IMF programme.
These concerns have been premised on the potential fall in revenue for the next NPP government.
At a meet-the-press on Sunday, August 25, Bawumia while responding to the concerns, highlighted that his administration is committed to fostering economic growth while ensuring fiscal discipline, particularly under the IMF programme.
These concerns have been premised on the potential fall in revenue for the next NPP government.
At a meet-the-press on Sunday, August 25, Bawumia while responding to the concerns, highlighted that his administration is committed to fostering economic growth while ensuring fiscal discipline, particularly under the IMF programme.
“I don’t see any inconsistency at all between what I am proposing and the Fund programme that we are engaged in. If you read my proposals very carefully, I start by saying we are going to bring down government expenditure by 3% of GDP. The proposals in terms of the tax cuts I am proposing will not even come up to 0.5% of GDP.
“So you have more than enough space to fund what I am talking about. I think the issue at the end of the day for the programme is to make sure we maintain fiscal sustainability,” the Vice President said.
Dr. Bawumia further stated that in addition to this, he is proposing an amendment to the country’s Fiscal Responsibility Act to first make the Fiscal Responsibility Council independent akin to the Monetary Policy Committee of the Bank of Ghana that will have oversight of fiscal responsibility and “a tighter fiscal rule where expenditure will not exceed 105% of the previous year’s tax revenue”.
