Bawumia Affirms Economic Agenda Aligns with IMF Programme Amid Policy Concerns

Dr. Mahamudu Bawumia, flagbearer of the New Patriotic Party (NPP), has reassured that his economic policies are in harmony with the ongoing International Monetary Fund (IMF) programme guiding Ghana's financial stabilization.

This assurance comes in response to concerns from economic analysts about how proposed policies, such as scrapping the e-levy, introducing a tax amnesty, and implementing a flat tax regime, might affect the country's revenue streams and the IMF-backed stabilization measures.

Speaking during a media engagement on Sunday, August 25, Dr. Bawumia emphasized his administration’s commitment to economic growth alongside fiscal discipline. He clarified that his policy framework is designed to support the objectives of the IMF programme while addressing Ghana’s economic challenges.

“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," he stated.

Dr. Bawumia also proposed an amendment to Ghana's Fiscal Responsibility Act, aiming to make the Fiscal Responsibility Council independent, similar to the Monetary Policy Committee of the Bank of Ghana. This council would oversee fiscal responsibility, ensuring that expenditure does not exceed 105% of the previous year’s tax revenue, thereby maintaining fiscal sustainability.