Dr. Emmanuel Oteng, the former advisor to the IMF, has urged the government to publish a 2023 budget statement that will boost economic confidence as well as rebuilt trust.
Subsequently, he claimed that Ghana is no longer able to access the global capital market as a result of the credit rating agencies’ downgrading of the country’s economy.
In order to achieve this, he claimed that the budget would need to make it plain to investors what areas of the economy they should put their money into.
Prior to the budget announcement, he suggested that the government must show that it will be able to generate enough primary balance in an interview with TV3’s Sani Abdul-Rahman.
He iterated as follows: “We have to ensure that we are able to get access to the international financial market. Because of the rating agencies’ downgrade of us, we don’t have access now. But that reflects their concern that we are not able, essentially, to repay our debt.
“So the budget that is coming, hopefully, should restore the framework to ensure that we are able to inspire confidence.
Furthermore, Dr. Emmanuel Oteng continued to emphasize that: “How do you inspire confidence? If you are able to have enough revenue to pay off debt, you are able to generate enough primary balance because the primary balance will be the result of you will pay down debt eventually.
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“It will take time, it does not happen in a month or maybe a couple of months or a year but you have to start building up surpluses to be able to repay debt so that they know that eventually, you are a country that you can trust, a country that we can lend to because you are a county that will be able to repay its debt. So it is important we send these signals,” the former IMF advisor added.
