Audio By Carbonatix
The former Minister of Finance Dr. Amin Adams, has described projections in the 2025 Budget as unrealistic and lacking credibility.
He has therefore called on the International Monetary Fund (IMF) to urgently examine the fiscal balances outlined in the budget, emphasising the IMF's responsibility for ensuring transparency in addressing the government’s financial plans.
During a press conference on March 13, Dr. Adams raised concerns about the budget’s reliability, noting that its projections cast doubt on its accuracy.
He stated, “The projections for the fiscal balances in the 2025 budget lack credibility and require thorough scrutiny from both the IMF and the people of Ghana.”
He further urged the IMF to take action in line with its commitment to transparency, which he described as one of the fund’s core principles.
Dr. Adams stressed that it was essential to address these concerns urgently to protect the economy from potential harm. “This issue must be addressed before further damage is done to our economy,” he warned.
Dr. Adams also criticised the government’s plan to return to the bond market, arguing that it has not adequately recognised the challenges posed by the debt environment left by the previous NPP administration.
He pointed to Ghana’s debt-to-GDP ratio, projected to reach 61.8% by the end of 2024, as evidence of improvement, down from a high of 81% of GDP.
“We had to seek IMF support due to unsustainable debt levels, which had reached 81% of GDP. However, through skilled negotiations and a strong debt strategy, we have managed to reduce it to 61.8%,” Dr. Adams explained. “This achievement reflects the NPP government’s success in managing the country’s debt responsibly.”
He further noted that the current debt-to-GDP ratio of 61.8% is now lower than the pre-COVID-19 level of 65.7% in 2019. “This demonstrates that the NPP government has placed Ghana’s debt on a more sustainable path,” he added. “The NDC government should now continue implementing the debt strategy we initiated.”
Dr. Adams reminded the public of the IMF’s target for Ghana to achieve a debt-to-GDP ratio of 55% by 2028.
He pointed out that, with the expected reduction to 61.8% by the end of 2024, Ghana is only six percentage points away from reaching the IMF’s target.
“This target is well within reach, and the NDC government should be able to meet it ahead of the 2028 deadline,” he said.
In comparing the current debt situation to the one left by the NDC government in 2016, Dr. Adams highlighted that Ghana’s debt-to-GDP ratio stood at 73% before the GDP rebasing in 2018.
“You claim that the NPP has over-borrowed, yet we will leave office with a debt-to-GDP ratio of 61.8%. In contrast, you left office with a ratio of 73%, despite not borrowing,” Dr. Adams remarked.
He emphasised the importance of maintaining transparency and responsible fiscal management, especially in light of the 2025 budget.
He reiterated that the government must ensure its fiscal policies are credible, sustainable, and aligned with international targets to safeguard the country’s long-term economic stability.
“The 2025 budget must be re-examined with full transparency to ensure that our fiscal policies are credible and sustainable,” he concluded.
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