The European Union (EU) is considering withdrawing its support towards funding of Ghana’s budget in the future.
This is as a result of the country’s failure to meet most of the targets agreed on with the International Monetary Fund. Government is in talks with the Bretton Wood institution for a review of the targets which were not met by the previous government, resulting in a possible extension of the programme.
EU Ambassador to Ghana, William Hanna said, although it supports government’s commitment to improving public financial management, not meeting the IMF target could affect future assistance from the EU.
“We have been providing budget assistance to Ghana and during the budget presentation in Parliament and I was concerned to hear in the presentation that many of the targets under the IMF programme were not met and it made me to wonder should we support the budget or maybe we should not support the budget.
“There are questions that I think they need to be asked by public financial management. It’s crucial that a country with a strong public financial management that means accountability, parliament is [seen] playing its role and checks and balances.”
The European Union has also earmarked 50 million Euros towards supporting future programmes under government’s public financial management policy. Hanna noted that an effective management of public finances would wean Ghana off foreign aid.