Isaac Adongo, Member of Parliament for Bolgatanga Central
The International Monetary Fund (IMF) $3 billion bailout program designed to support Ghana’s economic recovery is facing significant challenges, according to Member of Parliament for Bolgatanga Central, Isaac Adongo.
Speaking on GHOne TV’s State of Affairs with Joshua Kodjo Mensah, Isaac Adongo disclosed that Ghana in 2024 recorded a primary balance deficit of over 4%, a stark contrast to the projected 0.5% surplus under the IMF agreement.
He explained that this shortfall is a major setback in achieving fiscal discipline, which was a key target for the government’s debt sustainability efforts.
“As we speak today, the IMF program is being derailed. We were budgeted to do 0.5% of primary balance, which is an anchor of our fiscal framework, and yet we ended up with 4 point something percent. The reason the finance minister is not comfortable talking about it is because it is not good out there to say that we said we were going to do 0.5%, less than 1%, but we ended up doing a negative of 4%,” Adongo revealed.
“Calculate 4% of GDP. Today, our GDP is calculated in trillions. So, calculate 4% of one trillion—we are talking about 4 billion that we borrowed just to pay interest on debts. That is the picture!” he stressed.
Isaac Adongo’s concerns align with President John Dramani Mahama’s remarks during his State of the Nation Address (SONA) on February 27, 2025.
President Mahama confirmed that Ghana has failed to meet several IMF benchmarks, particularly inflation control and currency stability.
“Not even the restraints of an IMF programme were enough for the previous economic managers to exercise prudence in managing our finances. After setting an inflation target of 18% by the end of 2024, the actual rate was 23.8%, significantly exceeding the IMF threshold. The Ghana cedi continued its downward slide, losing 19% of its value against the dollar in 2024. It had already lost 27.8% in value in 2023.”, the President told the nation last Thursday.
President Mahama however, assured Ghanaians that his administration was working to correct these failures and stabilize the economy.
“We are doubling our efforts to complete all outstanding structural reforms. Through the budget, we will implement corrective measures to restore fiscal discipline and debt sustainability. We are also working towards completing the upcoming fourth review of the IMF-supported program.”, he added.
Outlining the key strategies government intends to use to restore Ghana’s economy and regain control of the IMF program, Isaac Adongo emphasized the role of fiscal discipline in achieving an economic turnaround
“One major part of our reset agenda is to fix the fiscal framework. We must put Ghana on a fiscal path that leads to sustainability, while also ensuring that it is inclusive and generates jobs,” Adongo stated.
“We want to have a handle on inflation. It is critical that we develop policies that ensure stability in the cost of living and the value of the cedi,” he added.
Isaac Adongo had also challenged those questioning the President decision to paint a gloomy picture of the country.
“His Excellency John Dramani Mahama has said ‘I will fix it.’ ‘I will fix it’ doesn’t mean that the people should not know from what depth he is going to raise the country out of. He needs to let people know the magnitude of the problem he is resolving,” he argued.
Isaac Adongo finally expressed confidence Finance Minister Dr. Cassiel Ato Forson will do a stllar job that his predecessors.
“Let me tell you, I and Cassiel Ato Forson have been beneficiaries of the backstopping role of many technical experts in our party. I can tell you that for every problem in the NDC, we have a lot of experts that support us. So, Ato is going to have the support of Seth Terkper, he’s going to have the support of Nii Moi, Gatsi, and the Adongos of this world. So, he’s not alone.”
“That is what gives me the confidence that we can’t allow him to fail because if he fails, we all fail. And we believe that His Excellency wants to demonstrate that it’s not about how long you stay in office, but the impact you make within that relatively short period. And Ato Forson will deliver within four years much better than others have done in eight years.”, he concluded
Since securing a $3 billion IMF Extended Credit Facility (ECF) program, Ghana has received $1.92 billion as of December 2024. The most recent disbursement of $360 million came after the successful completion of the third program review on December 2, 2024, with a next review, scheduled for April 2025.
Despite these inflows, Ghana’s economy continues to struggle under high inflation, a depreciating currency, and missed fiscal targets, putting the IMF programme at risk of derailment.
The 2025 Budget Statement, expected to be presented on March 11, 2025 is expected to provide a comprehensive overview of Ghana’s economic performance in 2024 which government officials have been tight lipped on.
It is also expected to outline plans for fiscal discipline, revenue generation and proposed reforms aimed at saving the country’s ailing economy.