We will quicken the pace of fiscal consolidation – Akufo-Addo

Ghana plans to pursue a faster fiscal consolidation through the implementation of prudent fiscal measures, President Nana Addo Dankwa Akufo-Addo has said.

Speaking at his last State of the Nation Address to the 7th Parliament, Thursday, January 5, 2021, President Akufo Addo reiterated his commitment to roll out measures to quicken the pace of fiscal consolidation.

“Government will continue to implement prudent fiscal measures to quicken the pace of fiscal consolidation”.

He also indicated that the Minister of Finance will in March 2021, brief parliament on measures taken to return the country to recovery.

“In March this year, the Minister of Finance will come to the august House to provide further details on the measures to be taken to restore our country back to the path of economic recovery,” Akufo-Addo said.

Analysts argue that a slower fiscal consolidation may lead to a higher public debt trajectory and could be a source of downward pressure on the country’s ratings.

Ghana’s issuance of a USD3 billion Eurobond in February supports its short-term external liquidity position.

The IMF also approved a USD1 billion emergency Rapid Credit Facility for the country in April.

The central bank’s financing of part of the fiscal deficit further eases the need for external funding.