NPP government failed to meet structural benchmarks set by IMF – Finance Minister

Finance Minister Dr Cassiel Ato Forson has revealed that the New Patriotic Party (NPP) administration failed to meet all the structural benchmarks set for assessment by the International Monetary Fund (IMF).

Dr Forson explained that, according to data from the Ministry of Finance, Ghana was supposed to achieve a 0.5 per cent GDP surplus, but the NPP government recorded a 3.9 per cent GDP deficit.

He also pointed out that the IMF programme includes a monetary policy consultation clause, which required inflation to be at 15 per cent. However, inflation currently stands at 23.8 per cent, significantly higher than the target.

Dr Forson made these comments during an interview on The Point of View with Bernard Avle on Channel One TV on Wednesday, March 12, 2025. 

He was responding to questions regarding the IMF’s praise of Ghana’s performance, particularly in debt restructuring and economic recovery, as noted in December.

"Okay, so let me start with the carbon balance, which is a key piece. We were supposed to do 0.5 per cent of GDP. The data that we've seen so far, they've done a deficit of 3.9 per cent of GDP and that is the primary anchor. That is the main anchor for the IMF programme," he said.

"There is a monetary policy consultation clause in the IMF programme and we are supposed to do inflation. Inflation was supposed to be 15 per cent. What is the outcome? 23.8 per cent. It has triggered a discussion under the IMF programme, for us to have a conversation on the monetary policy." 

He continued: "In fact, the third major QPC that we missed had to do with social spending. We failed. Even on social spending. So all the QPCs, the three main QPCs, were all missed and the structural benchmarks, including bills that were supposed to send to parliament, they missed all of them. So how can you say that the IMF programme is on track?, he queried.

The Finance Minister also mentioned that when they assumed office, the data available at the time suggested that the IMF programme was on track. However, the reality was quite the opposite, as they inherited a struggling energy sector.

"When we took office, based on all that we have seen and based on the data before us, at the time, we all knew the IMF programme was on track. But today, the programme is not on track. We have inherited an energy sector that is on its knees," he stressed.

"Energy sector that is on its knee. An energy sector that is throwing out a shortfall, annual shortfall, in excess of 2 billion US dollars every single year, that the state must look for money and finance. In the 2025 budget, I have provisioned ₵28 billion to support the energy sector."

"If we are failed to do that, the energy sector, by the end of the year, would have seen difficulties and problems and this is something we inherited. That is what the energy sector inherited," Dr Forson added.

In December, the IMF commended Ghana for its impressive economic recovery, highlighting significant progress in debt restructuring and fiscal reforms. The global financial institution acknowledged the country's efforts to stabilize its economy, despite the challenges it faced in recent years.