A Think Thank, Think Progress Ghana, has urged government to adhere to a strict fiscal program to restore and maintain the debt sustainability in the country.
According to the group, the government must implement austere measure to curtail reckless expenditure. It noted that the state must reduce “debt portfolio of State-Owned Enterprises” program and establish proper corporate governance.
Additionally, Think Progress Ghana called for a “drawdown on the number of Presidential Staffers” employed under Article 71 of the 1992 Constitution and eliminate ex-gratia.
“The government should adhere to a strict fiscal program to restore and maintain debt sustainability. It should eliminate wasteful spending. To this end, we call for a reduction in the number of ministers and their deputies, get rid of deputy CEOs at state institutions…”
Think Progress Ghana
The Think Tank revealed that there is the need for significant improvement in expenditure efficiency and strict adherence to procurement law and processes. It explained that social expenditures should be thoroughly examined.
“We call for a complete review of some of the government’s flagship programs such as Free SHS and develop relevant and appropriate funding mechanism. Funding for this program in its current form is not sustainable. We support free access to education for the poor and the vulnerable in our society as enshrined in Article 25 of the 1992 constitution. Those who can afford should be made to pay.”
Think Progress Ghana
Resolving the economic challenges in the country
The government, according to the group, should design and implement mechanisms to identify the needy and grant them access to free quality education. It further advised that the government should focus on making long-term investments that have potential to generate revenue to service debts incurred from making those investments.
“We need to make long-term strategic social and infrastructural investments. We call for strategic investment in human capital, technology, health, agriculture, and roads. We should not continue to borrow for consumption.”
Think Progress Ghana
Highlighting on some measures government and IMF should consider in their negotiations, Think Progress Ghana expressed that government must publish “the home-grown policy”, based on which the negotiation with the IMF is ongoing. This, it stated, will help restore some “modicum of trust to governance” and to allow for public scrutiny to engender some level of credibility.
Similarly, Think Progress Ghana emphasized that government must announce interim findings regarding public debt, interest payments requirements, and comprehensive fiscal and international reserves and “immediately provide information about the status of the stabilization and the heritage” funds.
“Subsequently, the government should design and implement sound debt management strategies. The goal is to improve our credit risk profile, reduce inflation to a single digit from the current 30+%, reduce interest rates, and restore and maintain confidence in the cedi.”
Think Progress Ghana
The Think Tank revealed that government should also ensure that any fiscal adjustment programme the government negotiates for should protect the poor and the vulnerable in the country. That notwithstanding, it commended President Akufo-Addo for reaching out to IMF to help solve the economic challenges.
“We should note that the government would not have initiated a bailout conversation with the IMF if better alternatives to solve our economic problems existed. Our bond credit rating has deteriorated, we do not have access to the sovereign bond market, and the domestic market is significantly inadequate and expensive. The usual way to finance our budget deficit is out of the question. Thus, going to the IMF is the plausible solution for us since the government has lost the fight against corruption.”
Think Progress Ghana
