Professor of Finance at the University of Ghana Business School (UGBS), Prof. Godfred Bokpin has affirmed the importance of a lean government structure in governance.
He began by providing an-depth analysis into the government’s decision to reduce the size of its ministries. Prof. Bokpin’s commentary touched on the economic implications of such a move, the global trend towards lean governance, and the broader fiscal challenges facing Ghana.
His perspective is crucial for understanding the fiscal policy adjustments needed to stabilize the country’s economy.
“The political class among almost all the political parties are responding to public sentiments about government size and its implications. If the government is asking citizens to sacrifice, the government has to lead the way.”
Prof. Godfred Bokpin , Professor of Finance at the University of Ghana Business School (UGBS)
This reduction is seen as a response to the pressing need for the government to set an example in managing public resources prudently.
Prof. Bokpin emphasized the importance of this symbolic move, even if the immediate cost savings might not appear substantial.
Drawing comparisons with other African countries, Prof. Bokpin highlighted the trend toward smaller governments.
“If you look at the trend, even across Africa, you will see a certain trend of lean government. For instance, Benin is governing with just 24 ministers. You can look at that of Rwanda and all of that.”
Prof. Godfred Bokpin , Professor of Finance at the University of Ghana Business School (UGBS)
This global perspective underscores the imperative for Ghana to adopt a more streamlined governance structure, reducing the financial burden on taxpayers.
He pointed out that such a move is not just a local necessity but part of a broader, international shift towards more efficient public administration.
Moreover, Prof. Bokpin elaborated on Ghana’s economic challenges, noting important developments on the country’s tax base system. He emphasized;
“We are at a state where our tax base cannot support our democracy. That is why in the recent crisis, beyond the traditional fiscal consolidation measures, we relied upon debt treatment.”
“The fiscal savings from now to 2037, from the domestic debt restructuring, is over 61 billion Ghana cedis.’’
Prof. Godfred Bokpin , Professor of Finance at the University of Ghana Business School (UGBS)
Prof. Bokpin did not shy away from addressing the human cost of economic adjustments, particularly on pensioners.
“Can you imagine some pensioners with just 200,000 Ghana cedis had to lose some, had to take some haircuts? They were not even allowed to choose the style of the haircut.”
Prof. Godfred Bokpin , Professor of Finance at the University of Ghana Business School (UGBS)
This poignant observation underscores the sacrifices required from various segments of society, particularly those most vulnerable to economic fluctuations. Prof. Bokpin commended the government in this initiative. He added;
“I was actually looking at the total number of ministries coming up to about 19 and the total number of ministers should be less than 40.
“Given Akufo-Addo’s standard, which really is bad, 60 looks like performance. But going forward, the next government should set the bar a little higher.”
Prof. Godfred Bokpin , Professor of Finance at the University of Ghana Business School (UGBS)
Cost Savings and Public Procurement
In terms of cost savings, Prof. Bokpin estimated significant reductions in public spending. He reaffirmed; “The back of the envelope tells me that we will be saving more than 30 million Ghana cedis in direct savings.”
He added that reducing the number of ministers would alleviate the financial strain on procurement systems and minimize the need to create largesse for political appointees.
Prof. Bokpin urged the government to consider further reductions in staff at the presidency.
“In 2024, budgetary allocation to the office of the president is over 2 billion cedis. In 2021, the staff strength at the office of the president was more than 900. What kind of work are they doing?”
Prof. Godfred Bokpin , Professor of Finance at the University of Ghana Business School (UGBS)
Prof. Bokpin’s analysis provides a critical lens through which to view the government’s restructuring efforts.
His emphasis on the symbolic and practical benefits of a leaner government structure, coupled with detailed fiscal analysis, sets a foundation for ongoing discussions about economic policy and governance in Ghana.
Through his comprehensive critique, Prof. Bokpin underscores the need for continued reforms that not only align with public expectations but also enhance the sustainability of Ghana’s economic framework.
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