Seth Terkper, former Finance Minister of Ghana, is advocating for a strategic shift in the country’s financing approach, warning against overreliance on short-term treasury bills (T-bills) and emphasizing the importance of responsible debt management.
Speaking at a media dialogue focused on Ghana’s International Monetary Fund (IMF) program, Terkper cautioned that the country’s heavy dependence on T-bills for financing poses significant risks to its economic stability.
He highlighted the short-term nature of T-bills, stressing that they require repayment within three months, thereby contributing to an increase in public debt.
Mr Terkper also raised concerns about the exclusion of the nation’s arrears from the total debt stock, underscoring the potential distortions in assessing Ghana’s fiscal health.
He warned against the adverse implications of neglecting arrears, emphasizing the need for comprehensive debt evaluation and management.
In addition to his critique of debt management practices, Mr Terkper advocated for the abolition of the Electronic Transaction Levy (E-Levy), citing its failure to achieve desired objectives.
Instead, he endorsed the implementation of a digitalized tax system by the Ghana Revenue Authority as a more efficient means of enhancing domestic revenue collection.
The media dialogue, organized by PFM Tax Africa Network, served as a platform for Terkper to engage in a candid discussion on Ghana’s economic challenges and policy considerations.
His insights underscored the imperative for proactive measures to ensure fiscal sustainability and effective revenue mobilization in Ghana’s economic landscape.
Source:norvanreports