Experts Call for Sustainable Economic Measures to Restore Stability

By News Ghana 

July 4, 2024

Policymakers and academics have converged to advocate for sustainable fiscal and monetary policies that address Ghana’s current economic challenges.

The consensus emerged from the inaugural quarterly economic roundtable co-hosted by the Institute of Statistical, Social and Economic Research (ISSER) and the Ministry of Finance.

Dr. Nii Kwaku Sowa, Country Director of the International Growth Centre (IGC-Ghana), emphasized the urgent need for the government to enhance revenue collection efficiency rather than introducing new taxes. He pointed out that the proliferation of taxes and levies burdens businesses and hinders economic growth.

“Increasing revenue collection efficiency should be the priority. Introducing more taxes would only add to the burden faced by Ghanaians,” Dr. Sowa remarked.

Professor William Baah-Boateng, Head of the Department of Economics at the University of Ghana, echoed concerns about Ghana’s fiscal policy, attributing the economic challenges to a lack of political will and excessive government expenditure.

“In Ghana, political pressures outweigh economic prudence. We need a commitment to prudent expenditure rather than simply cutting costs,” Professor Baah-Boateng asserted during his discussion on fiscal policy.

Professor Peter Quartey, director of ISSER, addressed the issue of debt sustainability and underscored the importance of assessing multiple indicators to gauge the country’s ability to manage its debts responsibly.

“The sustainability of our debt is critical. We must consider several indicators, including export GDP growth compared to interest rates, to ensure responsible borrowing,” Professor Quartey emphasized.

In discussions on monetary policy, panelists emphasized the pivotal role of effective monetary measures in maintaining macroeconomic stability.

Delivering the keynote address, Abena Osei-Asare, Minister of State at the Finance Ministry, reaffirmed the government’s commitment to implementing stringent fiscal policies to reduce deficits and manage public debt sustainably.

“We are dedicated to transparency in public finance management, full implementation of the Public Financial Management Act, and enhancing accountability mechanisms to ensure efficient use of public funds,” Minister Osei-Asare affirmed.

The economic roundtable concluded with a call for concerted efforts from policymakers, academics, and stakeholders to adopt sustainable economic measures to steer Ghana towards stable economic growth and prosperity.