Public Agenda NewsPaperPublic Agenda NewsPaper
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Font ResizerAa
Public Agenda NewsPaperPublic Agenda NewsPaper
Font ResizerAa
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Search
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Follow US
Breaking NewsElection watchtop stories

IMF cautions govts to exercise fiscal restraint as record number of countries hold elections this year

Suleman
Last updated: August 26, 2024 1:55 pm
Suleman
Share
3 Min Read
SHARE

The International Monetary Fund (IMF) has cautioned governments around the world to exercise fiscal restraints in order not to reserve sound public funds.

In 2024, a record number of countries, home to more than half of the world’s population, are holding national elections., the Fund said.

It added that history shows governments tend to spend more and tax less during election years.

More Read

Chief Justice Getrude Torkornoo removed
ABANTU Engages Unsuccessful Women Parliamentary Candidates to Strengthen Political Participation in Ghana
Pakistan unveils 7-point plan for Gaza peace at OIC summit
Bagre Dam Spillage claims life of farmer
Ghana and Nigeria explore electricity for gas barter agreement

Deficits in election years tend to exceed forecasts by 0.4 percentage points of GDP, compared to non-election years, the IMF stated.

“In this great election year, governments should exercise fiscal restraint to preserve sound public finances,” it said.

The fund is not the only institution sounding this caution.

Accounting and auditing firm, Deloitte, has cautioned the government of Ghana against overspending.

Deloitte said spending beyond the limit could pose a severe threat to the downward trend in inflation and also the improved currency performance.

Headline inflation declined to 22.8% in June 2024 from 23.2% in January 2023, per figures churned out by the Ghana Statistical Service (GSS).

The downward trend in inflation in 2024 has been largely driven by decrease in non-food inflation, tightening monetary policy, ongoing fiscal consolidation by the government, low volatility of transport fares due to stable crude oil prices, and some base drift effect from previous price increases.

In its assessment of the 2024 mid-year budget statement, Deloitte indicated that the downward trend recorded in the year-to-date depreciation and inflation further affirms the view that Ghana’s economic recovery process is on track.

This notwithstanding, it said, the upcoming elections and its potential for increased Government expenditure beyond targeted levels, as well as the recurrent increase demand for dollars ahead of Christmas festivities in the last quarter of the year present risk to the improved currency depreciation and inflation recorded so far.

“Having highlighted the risk to maintaining the positive trajectory noted above, it is important to note that the IMF Programme, whilst serving as a check on Government’s expenditure also provides opportunity to boost Ghana’s foreign reserves.

“This, together with other inflows expected from the World Bank Development Policy Operation (DPO) might help absorb some of the FX shocks associated with the December festivities,” it said.

Share This Article
Facebook Whatsapp Whatsapp Email Copy Link Print

Latest News

Ghana drops to 61st in 2025 Global Peace Index
August 26, 2025
Charles Abugre Chairs MiDA Board
August 22, 2025
Ghana cedi is world’s best-performing currency – Mahama tells investors in Japan
August 20, 2025
PAC Faults Communications Ministry Over Missing $6m
August 20, 2025
Burkina Faso’s junta expels top UN official over child rights report
August 19, 2025
OSP report: 17 of the most explosive cases now under full investigation
August 19, 2025
Ghana launches nationwide GPS network to modernize land administration, end land disputes
August 19, 2025

You Might Also Like

Big pay day for Bondholders as gov’t disburses GH¢9.7bn

August 19, 2025
Breaking Newstop storiesWorld News

US State Department revokes 6,000 student visas

August 19, 2025
Breaking NewsDevelopment Agendatop stories

Anti-corruption fight needs collective action, not silos – Mary Addah

August 19, 2025

Police invite political parties for talks on election violence and Akwatia by-election

August 18, 2025

About Us

Public Agenda is fou­nded and owned by Pu­blic Agenda Communic­ations.

Public Agenda was founded as a public interest Me­dia entity. Its Visi­on is to contribute to building a well-i­nformed society where accurate informati­on dissemination is the cornerstone of a democratic, just and equitable society.

Its mission is to inform, guide and bui­ld responsible citiz­enship and accountab­le decision making and strive for excell­ence in the media in­dustry. Public Agenda Communications is managed by a Board of Directors.

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?