Mahama gov't disregarded IMF measures-Prez Akufo, Addo

President Nana Akufo -Addo has accused previous Mahama administration of failing to strictly adhere to measures put in place by the International Monetary Fund(IMF) to restore fiscal discipline in the country's financial administration.

According to him, the previous administration missed all the targets the three years programme, which government signed with the IMF in 2014 sought to achieve.

"As compared to a target of 5.3% under the IMF programme, the fiscal deficit for 2016 was 9% of GDP on a cash basis and 10.2% of GDP on the commitment basis. It is clear therefore that the objectives set out in the programme has not been achieved," President Akufo Addo said.

The National Democratic Congress administration led by Mr John Dramani Mahama signed three years programme with the IMF after a reckless expenditure in the 2012 elections resulting to a deficit.

The programme among other things was aimed to restore fiscal discipline, debt sustainability as well as increase economic growth.

However, delivering his maiden State of The Nation's address in parliament Tuesday, President Akufo- Addo noted that previous administration failed to adhere to measures put in place by the IMF.

President Akufo Addo who lamented over the poor at state of the economy blamed the Mahama government for repeating what he described as reckless expenditure the country witnessed during the 2012 elections,which resulted in huge deficit in 2016 general elections.

This, he explained, made the government to miss the targets of the IMF programme.

President Akufo -Addo noted that government total projected expenditure for 2016 was Ghc 43.3 billion representing 26.1% of GDP, but said actual expenditure stood at Ghc50.3billion representing 30.3% of GDP.

On the issue of revenue mobilization, President Akufo-Addo noted that revenue target in 2016 under Mahama administration was missed.

He indicated that total revenue projection was Ghc37.9% representing 22% of GDP, but said actual revenue that came in was Ghc33.2% representing 19% of GDP.

President Akufo Addo also revealed that some Ghc 7 billion being arrears and outstanding debts circumvented the public financial administration system put in place to prevent such occurrences.

"These expenditures are currently audited," he sad.

On public debt stock, President Akufo -Addo blamed the Mahama administration for ballooning the country's debt stock from Ghc9.5 billion to Ghc122 billion in eight years.

"As at the beginning of 2009 Ghana's total debt stock was Ghs9.5billion .By the end of 2016, the debt stock had ballooned to Ghs122 billion. Ghana's debt stock now stands at 74% of GDP, after all the previous denials to the contrary," he explained.

Story By: Michael Creg Afful

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