IMF urges government to intensify efforts to strengthen 2011 budget outturn

Accra, March 1, GNA - The International Monetary Fund (IMF) has asked government to make additional efforts to strengthen Ghana's projected 2011 budget outturn, its latest review mission to the country said in Accra on Tuesday.

Mr Peter Allum, IMF Mission Chief, said it was necessary to limit near-term financing needs and put the budget on a sound footing over the medium term. Policy tightening, he said, may be needed in 2011 despite significant improvement in macroeconomic indicators last year. "Risks to inflation have shifted to the upside, reflecting rising demand pressures, global commodity prices and easing domestic liquidity," M= r Allum said at the end of review meetings with the Government and Central Bank Officials.

He said discussions during the two-week long visit focused on how to improve revenue performance, as well as on the Government's plans to strengthen expenditure control and develop a comprehensive strategy for managing arrears and related obligations. Commenting on concerns expressed by the Fund last year about the size of Ghana's current wage bill following the introduction of a new public sector pay policy, Mr Allum said although the Government showed some commitment to reduce its effect on the economy, there were still uncertainties. "There are still some uncertainties around the size of the wage bill and this forms part of our continued discussions with the Government", he added.