Executive Director of policy think tank Institute for Liberty and Policy Innovation (ILAPI), Peter Bismark Kwofie gas asked the government to be transparent in the Debt Restructuring Exercise.
In a statement, he explained that the government has failed to quantify how much money it is saving by reducing the use of V8 vehicles, freezing the creation of new agencies or institutions, and cutting the salaries of some public officials by 30% in all three budgets presented thus far.
He suggested that the government must ensure transparency in this debt restructuring policy.
”Fiscal and monetary transparencies should guide the government to build confidence for all stakeholders to support the recovery process,” he added.
”It’s also imperative for the government to listen to views and suggestions of development experts, economists and CSOs as it puts together debt restructuring policies. This would equally help build confidence for these experts to support the reforms.
Should this debt restructuring policy fails in the short term, the economy would fall lower then expected and could increase the debt to GDP 130% by December 2023. ”
Read the full statement below
Be Transparent in your Debt Restructuring Exercise
According to the Finance Minister, Our total public debt stock including State Own Enterprises (SOEs) exceeds 100% of GDP. This is scary and soon customers of banks may be restricted to daily withdrawals if the targets of debt restructuring are not achieved in the short-term.
The government in its three consecutive budgets (2022, mid-year budget and 2023) failed to quantify how much it is saving from cutting down the use of V8 vehicles, freeze on creating new agencies or institutions and a 30% cut on salaries of some public officials.
It’s the therefore important to ensure transparency in this debt restructuring policy of the government. Fiscal and monetary transparencies should guide the government to build confidence for all stakeholders to support the recovery process.
It’s also imperative for the government to listen to views and suggestions of development experts, economists and CSOs as it puts together debt restructuring policies. This would equally help build confidence for these experts to support the reforms.
Should this debt restructuring policy fails in the short term, the economy would fall lower then expected and could increase the debt to GDP 130% by December 2023.
By: Rainbowradioonline.com/Ghana
