We’ll review IMF programme. Osafo-Maafo tells Appointments Committee
The Senior Minister designate, Mr Yaw Osafo-Maafo, has indicated that the government will meet with the International Monetary Fund (IMF) to review the terms of its programme with the past government.
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Answering questions before the Appointments Committee of Parliament in Accra yesterday, he said the review was to create the fiscal space to allow the government to borrow to execute its programmes.
Besides, he said, the review of the three-year programme was necessary because the past government had missed many of the IMF targets, including growth rate and reduction of budget deficit.
Mr Osafo-Maafo said the government had already got in touch with the IMF on the issue, and indicated that an IMF review team would be arriving in the country early February, 2017 for a review.
He said the IMF would not find any difficulty agreeing to a review of the terms of the programme since it knew that it was a new government with its own set of programmes.
Can’t fault NDC
Mr Osafo-Maafo, one-time Minister of Finance and Minister of Education in the Kufuor administration, said the NDC government did its best to negotiate the IMF programme, and indicated “they cannot be faulted for that.”
He said the IMF was crucial for the enhancement of the country’s image in the eyes of the international community.
“We need the fund for international image. But we must follow it based on our terms so that we can have fiscal space to do our programmes,” he said.
Mr Osafo-Maafo said once the figures in the IMF programme changed, the government would send it to Parliament for consideration and approval.
NDPC
The Senior Minister designate said the government would not work with the 40-year development plan of the National Development Planning Commission (NDPC), saying “trying to think ahead 40 years is problematic.”
He said a national development plan should not exceed 10 years so that it would allow successive governments to run their own programmes.
Mr Osafo-Maafo said the government would have a critical look at the programme and do the necessary modifications.
“It is important to have a long-term development plan but not exceeding 10 years. Where modifications are needed with the current one, we will do them,” he said.
Taxes
Mr Osafo-Maafo said the government would reduce nuisance taxes, and indicated that the reduction would widen the tax net and increase revenue generation.
He said the government would include the tax reductions in its first budget to be presented to Parliament in March, 2017.
“We will keep the promises. We are looking at the relevant figures to inform our budget,” he said.
Economic transformation
Mr Osafo-Maafo said Ghana’s economy was fundamentally very strong, indicating that the sources of inflows were strong.
What was needed, he said, was the prudent management of the economy and discipline with expenditure.
“Ghana can run rather than crawl in economic development”, he said.
For instance, Mr Osafo-Maafo said the government could easily pay the teacher trainee and nurses’ allowances since they constituted only 0.1 per cent of the country’s Gross Domestic Product (GDP).
Senior Minister contention
Mr Osafo-Maafo defended his nomination as a senior minister, and indicated that his position was equal to that of the other ministers and that it was not the same as a prime minister.
He said the role given to him by President Nana Addo Dankwa Akufo-Addo was to coordinate the work of economic ministries and assist in the transformation of the economy.
Mr Osafo-Maafo said the Kufuor administration had Mr J.H. Mensah as a senior minister, and stated Mr Mensah played a significant role in the transformation of the economy.
Likewise, he said, President Akufo-Addo wanted him to “coordinate the activities of the economic sector of his cabinet.”
Transition period jobs
The Senior Minister designate said the government would review all the employments offered by the government and the procurements made during the transition period.
He said when necessary, the government would let the new employees go home quietly.
Past transactions
The issues of Mr Osafo-Maafo’s involvement in a drama surrounding the IFC, CNTI proposed loan facilities came up.
He indicated that due diligence was done in all instances.
For instance, Mr Osafo-Maafo said, the loan facility, said to have been in German that he signed without reading, was not true.
He said the terms of the agreement were signed before they went for the signing ceremony.
