The International Monetary Fund (IMF) says Ghana’s performance under the Extended Credit Facility (ECF)-supported programme took a hit toward the end of 2024 due to significant fiscal slippages triggered by large payables accumulated in the run-up to the general elections.

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“Preliminary fiscal data point to slippages in the run-up to the 2024 general elections, on account of a large accumulation of payables,” the IMF disclosed in a statement following the conclusion of a two-week staff mission to Accra, led by Mission Chief Stéphane Roudet.

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According to the Fund, this development led to a sharp deviation from key programme targets, with inflation overshooting expectations and several fiscal, energy, and financial sector reforms either delayed or only partially implemented.

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The IMF added that “overall performance under the IMF-supported program deteriorated markedly at end-2024,” prompting the new government to take corrective actions.

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To get the programme back on track, the new authorities have initiated an audit to verify the scope and nature of the payables. Based on initial assessments, the primary balance recorded a deficit of about 3.25% of GDP, diverging significantly from the target of a 0.5% surplus.

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In response, the government has rolled out a 2025 budget aiming for a primary surplus of 1.5% of GDP. It has also adopted reforms to tighten expenditure commitments and bolster fiscal responsibility.

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Despite the challenges, the IMF confirmed that a staff-level agreement had been reached with Ghana on the fourth review of the program. If approved by the IMF Executive Board, Ghana will receive an additional SDR 267.5 million (approximately US$370 million), bringing total disbursements under the program to about US$2.36 billion.

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The IMF mission concluded with a renewed commitment to support Ghana’s reform agenda, particularly in strengthening public financial management, promoting transparency, and ensuring debt sustainability.

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Meanwhile, a new report by the Centre for Democratic Development (CDD-Ghana) has highlighted alarming figures regarding the cost of winning elections in Ghana, raising serious concerns about the future of democratic governance and the country’s battle against corruption.

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According to the report, securing victory in both presidential and parliamentary elections now requires an estimated $150 million, and an additional 10 million Ghanaian cedis.

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The report attributes this significant cost to the increasing monetisation of the electoral process—a trend it warns is entrenching corruption and weakening accountability within public office.

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