ACCRA: President John Mahama said Ghana expects to secure a financial assistance deal with the International Monetary Fund (IMF) by the end of March to stabilize its economy and boost domestic reform.
The government aims to narrow the 2015 public sector wage bill to 40.5 per cent of tax revenue, from 49.3 per cent last year, he said, adding that it will also reduce the issuance of short term instruments in a bid to restructure government debt.
Ghana grew strongly for years through gold, cocoa and oil exports and was seen as one of Africa’s star economies, benefiting from the country’s stable democracy. But growth is due to slow sharply in 2015 as the government struggles to contain inflation, the budget deficit and a high debt to GDP ratio.
The cedi currency also fell 31 per cent last year and the government turned to the Fund last August. Mahama said Ghana is committed to securing an IMF program and we are confident that we will reach agreement with the IMF by the end of this quarter.
Mahama said the government recognizes the need to contain public sector wages, which drove a spike in the deficit to nearly 12 per cent of GDP in 2012. He added the announcement last month of a 13 per cent wage hike for civil servants is within budgetary limits.
