The World Bank has hinted that it will have to undertake an assessment of Ghana’s financing gap after the IMF programme before it makes major financial commitments to the country.
According to the bank, it will be prudent to examine the level of financial gap in the budget before structural changes are recommended by the World Bank as it helps fill the gap.
Speaking at the Flagstaff House after meeting President Akufo-Addo, the Vice President of the World Bank, Mr. Makhtar Diop was of the view that it is time for government to be innovative in generating funds.
“It is important that the government completes its work with the IMF to assess exactly the size of the financing gap. Once we have an idea of the gap, and what are the measures that the government would like to structurally change t,[then the World Bank will come in], because we are not talking about just financing the gap but then we must show what led to the gap so it can be addressed,” he said.
He proposed that government must work at developing innovative means to narrow the country’s budget deficit.
“If it requires working on the tax-revenue side to ensure that the target in revenue are realistic [then we must do it],” he said.
Making some recommendations, Mr. Diop cited that government could improve revenue from the private sector if the necessary measures are put in place to develop the sector.
“I’m thinking about property tax. Those tax that could bring additional resources to reduce the financing needs. The implementation of programmes that will allow the curve and correct some of the imbalances, the bank will certainly be one of the partners when it comes to budget support,” he assured.
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