Cut expenditure drastically – Executive Secretary of ICC highlights key areas the budget should address
The Executive Secretary of the International Chamber of Commerce, Ghana, Emmanuel Doni-Kwame, has stressed the urgent need to cut down expenditure drastically.
Mr Doni-Kwame said this in an exclusive interview with The Ghana Report ahead of today’s mid-year budget review presentation in Parliament.
According to him, it has become dire for the government to reduce the number of government machinery amidst the ongoing debt restructuring programme and economic challenges.
He cited an instance where one Chief Executive Officer of a state-owned institution has about two or three deputies, “literally doing nothing”.
He pointed out that such administrative redundancies drain financial resources, placing additional strain on the nation’s finances during a critical period.
To effectively manage the current economic crisis, Mr Doni-Kwame emphasized the importance of efficient resource allocation and reducing public sector inefficiencies.
With many citizens facing job losses and reduced incomes, the government’s ability to raise revenues through taxation has been severely curtailed. Thus, Mr Doni-Kwame believes drastic expenditure cuts are essential to maintain financial stability and reduce the pressure on struggling households.
The government’s recent move towards debt restructuring seeks to reorganize financial obligations for sustainable repayment.
However, Mr Doni-Kwame stressed that despite such efforts, the fundamental responsibility to repay the debt remains unchanged. The country must take concrete steps to address the debt burden and alleviate the strain on its citizens.
He further urged the government to explore ways to improve the country’s railway system to reduce transportation expenses and ease road congestion.
“We need to look at our transport situation. The cost of transportation is very high, and that also contributes to inflation. Get the train system running. Ideally, heavy containers should go through the train or sea, but now we have containers carried on our roads for the past 20 years. How possible?” He quizzed.
Asked if he thinks the Accra Sky Train project, signed in November 2018, was feasible, he laughed heartily and said, “I mean, we’re still crawling, and we want to fly. How will that work”.
He called for measures to reduce utility tariffs to alleviate household financial pressures.
For him, it was time for the government to scrap the COVID-19 levy, which creates an additional burden for the average Ghanaian worker.