Main cause of high debt levels is government's flagship programmes – IMANI president
Measures proposed by the government not deep enough – Franklin Coudjoe
President of IMANI Centre for Policy and Education, Franklin Cudjoe, has indicated that the measures proposed by the government are not deep enough to help resolve the current economic hardships in Ghana.
According to Cudjoe, the measures are not sufficient because they do not take away the current challenges the country is facing which is the tremendous level of debt, myjoyonline.com reports.
He said that the huge debt level was because of the implementation of the government's flagship programmes and since the government has not reviewed them, it will be difficult to get out of the current challenges.
“To the extent that they’re baby steps, I think we should be grateful for small measures. [But] I don’t see them as deeper enough, because if you look at the reasons for which we are where we are, it’s because our debt levels have become an iceberg and our debt levels are due to what we have been applying the debts to. Which is essential, a lot of the flagship programmes.
“Now, if you’re not reviewing the flagship programmes, as in cutting back or rationalising some of them, you’ve actually done not much. Maybe the Finance Minister knows something better than the rest of us. As I said, we are grateful for small measures, but they’re not larger enough; they’re not deeper enough,” he said.
Finance Minister Ken Ofori-Atta, on March 24, 2022, announced some expenditure reduction measures that are aimed at reducing the pressure on the public purse as part of efforts to revive Ghana’s economy.
Ofori-Atta indicated that the cut in expenditure is needed to ensure that the government attains its targets in the 2022 budget and also to ensure that the government is able to implement its social intervention policies.
The minister said that the measures to be employed will include suspension of the purchase of imported vehicles, the suspension of all foreign travels except for important ones, cutting discretionary expenditure by an additional 10 percent, a 50 percent cut in fuel coupon allocations for all political appointees and Heads of government institutions.
In addition, the government will cut down expenditure on its meetings and conferences by 50 percent and also suspend the establishment of new public sector institutions and new projects.
President of IMANI Centre for Policy and Education, Franklin Cudjoe