GhArticles.com Every News in Detail
Former President John Mahama is urging the current government to exercise caution in the utilization of the recently sanctioned $600 million IMF bailout, emphasizing the need for judicious spending to alleviate economic challenges in Ghana.
The disbursement, greenlit by the IMF Executive Board on January 19, 2024, comes after Ghana’s successful completion of the 2023 Article IV consultation and the initial review of the 36-month Extended Credit Facility arrangement.
Expressing concern about ongoing hardships faced by Ghanaians, Mahama insists that the Akufo-Addo-led administration must ensure the funds are used wisely to bring relief to citizens grappling with difficulties.
Despite the release of the first tranche last year, Mahama contends that Ghanaians are still enduring economic challenges, and in a Facebook post, he expressed skepticism about relief under the current government.
“Although the $600 million released by the IMF to the Ghanaian government should, under normal circumstances, ease the burden on the suffering populace, it is evident that hardships persist as long as the Akufo-Addo-Bawumia and NPP administration remains in power.”
In his social media statement, Mahama raised concerns about the potential impact of imposing Value-Added Tax (VAT) on electricity consumption, warning of a possible 21% increase in tariffs, resulting in elevated prices for goods, services, and transport fares.
“Implementing VAT on electricity consumption will exacerbate the hardship on Ghanaians, affecting the prices of goods, services, and transport fares. I support organized labor’s call for the government to reconsider collecting VAT on electricity consumption.”
While expressing readiness of the NDC to address Ghana’s economic challenges if elected in January 2025, Mahama emphasized the importance of responsible handling of the IMF funds. He urged the NDC minority in parliament to exercise strict oversight and scrutinize the government’s actions.
“I’ve urged the NDC minority in parliament to maintain strict oversight on the government and keep a close eye on the Bank of Ghana, which allegedly printed billions of cedis, worsening our economic situation.”
