Dr Cassiel Ato Forson, Minister of Finance
The World Bank has proposed a set of medium-term policy measures the government can adopt to enhance fiscal consolidation.
According to its 9th Ghana Economic Update, the Bank noted that sectoral reforms are necessary to address structural fiscal imbalances by eliminating deficits at the Electricity Company of Ghana (ECG) and COCOBOD, while also strengthening the financial sector.
It said private sector participation is required to overhaul the ECG in order to improve operational efficiency, boost revenue collection, and reduce losses.
“Moreover, it is necessary to ensure the consistent implementation of the quarterly debt settlement system and bring the Energy Sector Recovery Program (ESRP) back on track,” the report stated.
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On the cocoa sector, the Bank proposed a comprehensive reform of COCOBOD’s functions and responsibilities. It recommended that COCOBOD maintain its core mandate of cocoa production and marketing while phasing out quasi-fiscal expenditures.
In the financial sector, the World Bank stressed the importance of establishing a robust framework for resolving non-viable banks, strengthening supervisory systems to integrate fintech players while ensuring systemic stability, and expanding access to affordable financial services.
“Continued macroeconomic stabilisation, particularly sustained disinflation and fiscal consolidation, is essential to lower nominal interest rates and improve real borrowing conditions,” it said.
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On the fiscal front, the Bank underscored that the full rollout of the Medium-Term Revenue Strategy (MTRS) will be key to strengthening domestic revenue mobilisation.
“Remaining measures include rationalising VAT, expanding excise tax coverage, improving tax compliance, and broadening the tax base,” it added.
SSD/MA