Ghana’s consolidation efforts under IMF progamme to continue to be based on revenue

Ghana’s ongoing IMF Economic Credit Facility program emphasizes revenue mobilization to address its low tax-to-GDP ratio and significant development needs.

The government aims to increase the revenue-to-GDP ratio from 15.7% in 2022 to over 18% by the program’s end, relying on the 2023 Medium-Term Revenue Strategy.

Key measures include reducing tax expenditures, improving compliance, and streamlining expenditures while prioritizing public investment and social safety nets.

Savings are also expected through better spending allocation and energy sector reforms, such as tariff adjustments and cost reductions.

By 2028, Ghana is projected to achieve a moderate risk of debt distress, meeting all Debt Sustainability Assessment targets.

Total debt-to-GDP and external debt service-to-revenue ratios are projected at 55% and 18%, respectively. However, debt remains vulnerable to shocks, including commodity price fluctuations.