Despite requests from some economists and the opposition NDC for the government to seek assistance from the International Monetary Fund (IMF) to save what is left of the country’s economy, Deputy Finance Minister Dr. John Kumah has stated that the administration has no plans to do so.
According to Dr. John Kumah, the NPP government has the ability to change the economy and address present difficulties without the IMF’s assistance.
He also stated that if the government seeks IMF assistance, the IMF has almost no other answers for the country than austerity measures, which will exacerbate Ghanaians’ situation.
In an interview with Angel TV, the Member of Parliament for Ejisu indicated that the contentious E-levy has the potential to create more revenue than the IMF will offer if the country seeks their assistance.
He mentioned that the fund granted the country $900 million in three years, averaging $300 million per year, the last time the NDC government sought assistance from the fund. He did say, however, that the E-levy will earn $1.2 billion per year for the government and $3.6 billion in three years, so there is no need for the government to seek IMF aid because it has the capacity to improve the country’s economic status.
Explain the government’s position of his audience, he indicated that “the last time NDC went to IMF, they won’t us to be at par with them that is why they are shouting that we should go to the IMF, the fund gave us $900 million. This $900 million, let’s assume its $1billon was spread for the country in three years. So they disbursed the money in three tranches with an average of $300 million a every year.
“When you consider the E-levy we want to introduce, we have projected an average of GHC6.9 billion a year which translates into $1.2 billion every year. We can domestically mobilize this amount of revenue to develop this country. So with the three years that the IMF will give you an average of $1billion, the same three years can give us $3.6 billion without any interference from the fund. We can still fund our Free SHS of which I believe if the IMF comes in they will tell us to halt because we are spending too much,” the deputy minister of finance explained.
He therefore insisted that, “so we won’t go today nor tomorrow. If we can raise $3.6 billion and they will give us $900 million dollars why do we go there. We the NPP government have vowed and emphasized that as long as we are in charge of the economy of Ghana, we won’t go to the IMF today nor tomorrow.”
