The International Monetary Fund confirms Ghana will reverse recent civil service appointments and suspend unbudgeted projects inherited from the previous administration.
This forms part of binding fiscal measures under Ghana’s $3 billion Extended Credit Facility program, detailed in the IMF’s Fourth Review published July 13.
According to the agreement, the Mahama administration commits to four primary actions: achieving a 1.5% GDP primary surplus by March 2025, amending Public Financial Management and Procurement Acts, conducting comprehensive audits of government payables, and centralizing oversight of all public investments. These steps aim to return Ghana to moderate debt distress risk by 2028.
“The authorities intend to maintain primary surpluses of 1.5% of GDP while significantly raising domestic revenue,” the IMF report states.
The measures respond to fiscal pressures including a 47% wage-to-revenue ratio that strained national budgets under prior governments.
The policy reversal may affect hundreds of recent civil service appointees, though analysts note it could free resources for President Mahama’s $10 billion “Big Push” infrastructure initiative funded by petroleum revenues.
The consolidation aligns with Ghana’s July 9 receipt of a $367 million IMF disbursement and precedes Finance Minister Cassiel Ato Forson’s critical July 24 mid-year budget review.
Implementation challenges include mitigating social impacts while enforcing expenditure discipline. The IMF asserts these “tough decisions” will ultimately strengthen investor confidence and create fiscal space for priority sectors.