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Manage expenditure well to prevent return to IMF – Prof. Quartey to Government

Economists Professor Peter Quartey is positive Ghana will not return to the IMF if only it manages its expenditure and revenue better in 2020.

Some economists have pointed out that governments overspend in election years, creating economic difficulties that compel Ghana to go back to the IMF for a bailout.

But speaking to Citi Business News, Professor Peter Quartey said government must ensure it manages its revenue and spending well to prevent fiscal slippages that will take it back to the IMF.

“The first thing is how do we manage our resources, our revenue especially. We need to grow the revenue base. At the moment we are always recording revenue shortfalls so what innovative thing can government use to raise revenue, be it from the informal sector or broadening the tax base”, he said.

Prof. Quartey stated that it’s time for Ghana to improve its tax collection to help spend in critical sectors of the economy.

“I believe tax efficiency is very key so that we stay focused so we don’t go back to the IMF or we don’t borrow and reach debt sustainable level,” he stressed.

He was positive these actions if keenly followed will not return Ghana to the IMF any time soon.

“And then also our expenditure, I believe we spend but then we have to spend prudently. Where it is not necessary we need to cut on expenditure especially on the wage bill. We need to rationalize how much we are paying”, he stated.

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