Economist Professor Laud Mensah believes that, despite Ghana’s financial difficulties, the government will overspend or engage in excessive spending this election year.
The lecturer warned that overspending and increasing the country’s debt in 2024 could have major economic consequences.
In an interview with Nyankonton Mu Nsem on Rainbow Radio 87.5 FM, he stated that huge budget overruns during election years, along with Ghana’s incapacity to acquire long-term debt financing, could undercut the benefits made through an International Monetary Fund programme.
He argued that remaining fiscally responsible and prioritising expenditure in 2024 will be critical to the country’s economic recovery.
According to him, any attempt to engage in large spending to appease the electorate may push the administration to go over budget.
He noted that Ghana lacks the resources to overspend in this year’s election, underlining that if the government has things to do, they may have to prioritise; otherwise, coming back will be difficult.
Meanwhile, he has noted that the government and its appointees have failed to highlight the importance of Ghanaians appreciating the challenges we face.
He believes that the government is rather engaged in extravagance and wasteful expenditure while still asking Ghanaians to tighten their belts.
“So it is the posture and how best you approach the country. If, as president, and at the end of the day, you and your ministers are living big—every day, scandal upon scandal—do you think Ghanaians will sympathise with you when you tell them to tighten their belts?
There is nothing like that. So to me, it depends on the approach. If you come with a conservative approach and accept that we are broke and willing to cut down on spending, you will get the support of Ghanaians. But if you engage in unnecessary spending and make needless appointments, then Ghanaians will not support you.”
As a broke country, what you do is look at your expenditures, reduce the number of your ministers, and scrap some sectors that are currently redundant and are wasting resources without generating any.”
By: Rashid Obodai Provencal/Rainbowradioonline.com/Ghana
