International economist Dr. Julius Kattah has wondered why the government failed to place a moratorium on new loans.
Reacting to the measures announced by the Finance Minister En Ofori-Atta, Dr. Kattah stated that it would have been more prudent for the government to place a moratorium on all new loans and reframe existing ones.
The fiscal measures announced were not sound and solid. It will further erode confidence in the economy. Government should place a moratorium on new loans.
The Finance Minister, Ken Ofori-Atta, on Thursday announced the suspension of the purchase of imported vehicles by government officials for the rest of this year.
This directive took immediate effect and will complement the ongoing 20 per cent expenditure cut aimed at stabilising Ghana’s fiscal resources and sustaining the country’s debt.
According to Mr Ofori-Atta, the ban on vehicle purchases by public officials “will affect all new orders, especially four-wheel drives.”
He added that “with immediate effect, government has imposed a moratorium on all foreign travels, except pre-approved statutory travels.”
These measures, among other reasons, are expected to help the country meet the 7.4 deficit target set for this year.
Meanwhile, the government has approved a 30% salary reduction for all Cabinet Ministers and heads of State-Owned Enterprises, effective April, 2022 till the year ends.
But Dr. Kattah says the measures are not strong enough to resolve the challenges and will rather worsen the plight of Ghanaians.
He asked Ghanaians to brace themselves for further hardship because the measures will amount to nothing.
He was speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5Fm.