Former President John Mahama has urged President Akufo-Addo to cut down the size of his government in order to make adjustments for the economic challenges occasioned by COVID-19.
“Our economy has revealed from this COVID stress test that it is still fragile and we need to be prudent in how we manage going forward. We must also be diligent in how we apply the $1 billion facility as the various tranches are released.
“We face significant pressure on our local currency, declining domestic revenues, a slowdown in GDP growth, increase in the deficit to GDP of between 8% to 9%, a ballooning debt which is projected to hit almost 70% by end year.
This scenario requires that we exercise strict prioritization in our borrowing and expenditures and this might be the right time for the President to consider trimming down the bloated size of his government,” Mr. Mahama said while donated food Items to some vulnerable households in Ghana.
He also appealed to the government to make judicious use of the money given it by the IMF.
“It is predicted that this pandemic and the disruption of global trade and economic activity will adversely affect the economies of developing countries. Ghana is no exception.
The fast track approval by the IMF of the highly concessional Rapid Credit Facility is therefore timely and very welcome. This will help cushion the economy from the dangers of recession”.