Former Finance Minister Dr. Mohammed Amin Adam stated that the government missed key revenue targets. The government also fell short on borrowing goals, he said. This happened despite claims that the economy is stable. Dr. Adam, who is also the Karaga MP, spoke in Parliament.
He explained that the government had a target for revenue as a percentage of the Gross Domestic Product (GDP). This target was set at 13 percent. However, the government did not achieve this goal. Dr. Adam also questioned the government's assertions of economic stability. He noted that lower inflation rates did not translate into cheaper borrowing costs for the nation. He pointed out that even with inflation at 23 percent, the government could not secure lower borrowing rates.
Dr. Adam’s remarks come at a time when Ghana is working with the International Monetary Fund (IMF). The country is implementing an IMF-supported economic programme. This programme aims to restore macroeconomic stability and foster growth. However, the missed targets suggest challenges in fiscal management. Ghana's public debt remains a significant concern for investors and credit rating agencies. Previous economic performance has seen periods of high inflation and currency depreciation. The government has been promoting a narrative of economic recovery.
"They were supposed to achieve a target as far as revenue to GDP is concerned, they have brought it down to 13%, they failed," Dr. Amin Adam said in Parliament. He further argued, "Stability, when we talk about stability, is supposed to achieve a certain purpose which is to bring down the cost of borrowing." He believes economic stability should be judged by real improvements in economic access and stronger financial results, not just overall progress reports.
The missed revenue targets could mean the government has less money to spend on public services. It may also lead to further borrowing. This could increase Ghana's debt burden. Investors will be watching closely if these missed targets affect future economic policies. Decisions on further fiscal consolidation or tax measures might be accelerated. The government must now address these fiscal gaps to regain market confidence.