As part of the conditions to secure a US$3 billion extended credit facility from the International Monetary Fund, some taxes and tariffs must go up.

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These include a power tariff hike, electricity tariff hike, and an upward adjustment of both the Value Added Tax and Electronic Transaction Levy (E-levy).

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Among these conditions that were outlined by finance minister Ken Ofori-Atta are also the preparation of an ambitious 2023 budget, with a front-loading of the fiscal consolidation programme and a comprehensive set of structural reforms, notably a public expenditure review.

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Also, the Bretton Wood institution expects to see continued monetary policy tightening by the Bank of Ghana to bring inflation under control.

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Accra-based Joy FM reports that these were captured in the Investors Presentation by Ken Ofori-Atta and supported by the Governor of the Bank of Ghana, Dr Ernest Addison.

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Ofori-Atta noted that the government adjusted revenue and expenditure measures to improve debt sustainability and restore macroeconomic aimed at addressing structural bottlenecks contingent liabilities of state-owned enterprises, commitment controls, and arrears accumulation, and domestic revenue mobilisation.

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Mr Ofori-Atta also said the government is committed to rebuilding reserve buffers, mobilising external concessional financing from multilateral and bilateral partners, and suspending external debt service payments.

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Also, he said the government will safeguard social protection programmes and ensure the burden of adjustment is fairly distributed.

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Additionally, he noted that social spending will be targeted to protect the most vulnerable from the impact of the economic crisis and fast-track the implementation of growth-oriented socio-economic policies, such as Ghana CARES to mitigate the impact of the pandemic and support economic recovery.

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As part of measures to secure the bailout, the government is aiming at reaching a 1.5% of Gross Domestic Product primary surplus in the medium term, bringing inflation below 8% in the medium-term and restoring external buffers with gross international reserves reaching 3 months of import cover by 2026.

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Also, the government is targeting a real Gross Domestic Product growth of 5% over the medium-term and being competitive with exports surpassing 37% of GDP in the medium term.

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