Core Insights - The International Monetary Fund (IMF) expresses serious concerns regarding Ghana's fiscal governance, highlighting issues of budget credibility and increasing expenditure arrears that undermine fiscal discipline and foster corruption [1][2] Group 1: Fiscal Management Issues - Ghana's weak public financial management system continues to damage the credibility, transparency, and accountability of public spending [1] - Despite reforms like the Public Financial Management Act and the Government Integrated Financial Management Information System (GIFMIS), budget credibility remains low, leading to inefficiencies and governance risks [1] - As of 2023, expenditure arrears have accumulated to 6.3% of GDP, with ministries and agencies frequently issuing bad checks, resulting in project delays and unpaid contractors [1] Group 2: Corruption and Governance Failures - The report links the accumulation of arrears to corruption vulnerabilities within Ghana's fiscal system, where limited cash resources lead officials to prioritize certain invoices, a process susceptible to bribery [2] - The IMF describes this discretionary power as a governance failure that undermines transparency and distorts budget execution, eroding public confidence in fiscal management [2] - Although the government is attempting to address these issues through a debt clearance and prevention strategy launched in mid-2023, the implementation has been slow and fraught with gaps [2] Group 3: Recommendations and Urgency - The IMF urges the Ghanaian government to promptly clarify and implement the debt clearance strategy, take urgent actions to eliminate existing arrears, and prevent further accumulation [2] - The report calls for broader institutional reforms to restore the government's fiscal credibility [2]