Finance Minister Dr Cassiel Ato Forson has defended the government’s decision to maintain strict spending controls under Ghana’s IMF programme, insisting that the agreement is with the country and not any political party.

Speaking on Joy News’ PM Express hours after presenting the Mid-Year Budget Statement to Parliament on Thursday, he said the current administration has a responsibility to honour commitments made by the previous government under the $3 billion IMF-supported programme.

According to him, the New Patriotic Party (NPP) government signed the agreement with the IMF before leaving office and committed Ghana to achieving a primary balance target of 1.5% of Gross Domestic Product (GDP).

“The NPP committed Ghana into an IMF program, signed an agreement with the IMF and borrowed $3 billion from them, and committed us, this government, that we would do 1.5% of GDP,” he said.

“This was the commitment the NPP made to the IMF, and took the money, of which by the time they were leaving office, they had spent three-quarters of the $3 billion.”

Dr Ato Forson argued that political changes do not affect Ghana’s obligations under international agreements.

“IMF does not deal with political parties; they deal with government and countries,” he said.

“I have a responsibility to achieve 1.5 per cent of GDP. Are you telling me that I should default on the promises that the Government of Ghana has taken a loan from the IMF? Certainly not.”

The Finance Minister said meeting the IMF condition is necessary for Ghana to successfully complete the programme and exit.

“I have to make sure that this condition is met, and it is for that reason that the IMF is bold enough to go to their board that Ghana has achieved all the conditionalities for which they loaned us, and so Ghana is actually exiting the IMF program,” he said.

Dr Ato Forson maintained that the target was not created by the current administration but was part of the conditions attached to the IMF support.

“This is a commitment that the people of Ghana and the government of Ghana must fulfil, and I can tell you that I am on course to fulfil this,” he said.

He explained that Ghana had already achieved significant progress towards the target, noting that the government’s performance gives it room to spend more later in the year.

“I’ve done 0.9, and so by the end of the year, even if you annualise 0.9 times two halfway times two, it will be 1.8,” he said.

“It means getting to the end of the year, I will have room to be able to spend 0.3% more, and that is what it means.”

Responding to suggestions that he was being credited for meeting the target because government was not spending, Dr Ato Forson rejected the argument.

“Oh no, but do you want me to spend and derail the IMF program? Is that what they want me to do?” he questioned.

He said abandoning the IMF conditions could push the country back into economic difficulties.

“Unless they want President Mahama and me, because it’s President Mahama’s budget, to derail the IMF program, so that we spend as if there’s no tomorrow, crash the economy again, and go back to economic crisis with a haircut,” he said.