The government has expressed disappointment with Standard and Poor’s (S&P) global ratings for its recent downgrade of Ghana’s economy.
It noted that S&P Global Ratings downgraded Ghana’s foreign and local currency credit ratings from “B-/B’ To ‘CCC+/C’ with a negative outlook on 5th August 2022.
It said S&P’s decision for the downgrade was attributed to intensifying financing and external pressures on the economy.
In a statement from the Ministry of Finance, the government stated that it was disappointed about the S&P’s decision to downgrade Ghana despite the bold policies implemented in 2022 to address macro-fiscal challenges and debt sustainability which have been significantly exacerbated by the impact of global external shocks on the economy.
“The government is optimistic and will continue to be proactive to address the impact of external and domestic headwinds on the economy and the lives and livelihoods of Ghanaians,” it stated.
It noted that the government has implemented key revenue and expenditure measures including the 30% cut in discretionary expenditures.
It disclosed that the delays in the passage of key revenue measures introduced in the 2022 Budget affected revenues performance in the first half of the year
“However, all the revenue measures introduced in the 2022 Budget, including the review of the MDA Fees and Charges Bill, the Tax Exemption Bill, and the E-Levy Bill, have all now been promulgated by Parliament. These fiscal measures are now in full implementation mode to support our fiscal and debt sustainability policies,” it stated.
The statement assured Ghanaians that the government was well committed and confident to successfully emerge from these challenges in the shortest possible time as it has demonstrated the track record.
“Our current engagement with the International Monetary Fund for a Programme, incorporating our Enhanced Domestic Program (EDP), is expected to support our drive to restore and sustain macroeconomic stability; debt sustainability and promote growth and job creation whilst ensuring social protection to achieve our vision of a Ghana Beyond Aid,” it added.
Patience Anaadem, ISD
