The Ministry of Finance has said that the International Monetary Fund (IMF) bailout packages will not scrap off the government’s flagship programme, like the Free Senior High School policy among others.
According to the Ministry, IMF programmes are flexible in response to evolving circumstances.
“Ultimately, the IMF encourages governments in their program design to protect the poor or vulnerable groups from the impact of fiscal adjustment,” the ministry said.
In a document sighted by OilCity Radio, titled, Frequently Asked Questions as Government Engages the IMF for a Possible Funded Programme the ministry stated that Free SHS, and the School Feeding programme, among others, are good social intervention programmes.
“it is the lack of financing and unsustainable debt burdens that could constrain a government’s ability to maintain its level of spending, including social or investment spending.”
“In our situation, the IMF may ask Ghana to consider curtailing lower priority or non-productive spending (such as “white elephant” projects) as part of its fiscal adjustment but to preserve priority social spending, including on health and education,” the document added.
According to the Ministry, the objectives of the IMF programme are to provide a social safety net for the poor and ensure that investment spending boosts the economy at a critical time.
