Ghana’s IMF Talks Focus on Tax Cuts, Energy Debt, and Fiscal Reforms for 2025 Budget

The ongoing discussions between the Ghanaian government and the International Monetary Fund (IMF), running from February 10 to February 14, are centered on key economic issues including tax cuts, fiscal policy adjustments, energy sector debt management, and exchange rate stabilization. These talks are critical in shaping Ghana’s economic trajectory and policy direction for the 2025 budget.

Among the major changes proposed by the government are the scrapping of significant revenue measures such as the E-Levy, betting tax, and COVID-19 levy. This is part of a broader effort to alleviate fiscal pressure, reduce reliance on imported goods, and strengthen the country’s economic outlook under the IMF-supported program.

IMF Mission Chief for Ghana, Stéphane Roudet, is leading the discussions, which also involve officials from the Bank of Ghana, Ghana Revenue Authority, and Controller and Accountant General’s Department. Their goal is to assess progress and refine fiscal policies in preparation for the 2025 budget presentation.

Market analysts are urging the government to prioritize fiscal prudence, focusing on expenditure rationalization to address the growing budget deficit. The fiscal deficit is expected to reduce to 4.2% in 2025 as part of ongoing efforts toward fiscal consolidation, alongside cost-cutting measures such as reducing the number of ministers and limiting non-essential foreign travel for appointees.

Source: CITI NEWSROOM