KEY POINTS
- Mahama proposes tax reforms to boost revenue collection.
- Government reactivates sinking fund to manage Ghana’s debt repayment.
- IMF program extension is not a priority for now.
President John Dramani Mahama has revealed key proposals his administration presented to the International Monetary Fund (IMF) to address Ghana’s economic challenges and strengthen the Extended Credit Facility (ECF) program.
Speaking at the Munich Security Conference, Mahama stressed that Ghana’s tax system needs urgent reform. He argued that previous policies had burdened businesses and individuals with multiple taxes, leading to diminishing returns.
“We have reached a stage where the more taxes we impose, the less revenue we collect,” Mahama explained. “To improve compliance and efficiency, we need a transparent and simplified tax structure.”
As part of the IMF engagement, Ghana secured technical assistance to streamline the tax system, making it more accessible for businesses and individuals while boosting government revenue collection.
Managing debt and promoting fiscal discipline
A major focus of the discussions was Ghana’s debt restructuring, especially the country’s domestic debt repayment obligations exceeding $15 billion in 2025.
Moreover, Mahama reaffirmed his dedication to responsible fiscal management by highlighting how his government had re-established the sinking fund for timely debt payment.
“We need to cut unnecessary expenditures and redirect funds to priority sectors,” he said. “Our financial stability depends on making strategic decisions that will help us reduce debt over time.”
According to Graphic Online, Mahama also pointed out that wasteful spending must be eliminated to ensure that resources are properly allocated to essential programs.
IMF programme extension not a priority
When asked about the possibility of extending the IMF programme beyond 2026, Mahama made it clear that the government’s current focus is on meeting the existing targets.
“We are committed to completing this programme successfully,” he said. “If an extension becomes necessary, we will consider it, but for now, we are focused on the current trajectory.”
He also highlighted that the next IMF review in April will help shape Ghana’s upcoming budget, ensuring that policies align with international financial recommendations.
The president showed confidence about Ghana’s economic recovery path alongside his belief that partnership with the IMF plays a vital role in maintaining forward momentum.
