Debt And Deficit Have Undermined Confidence In Ghana’s Economy-Mahama

Former President John Dramani Mahama has identified skyrocketing debt and fiscal deficit as the major problems that are undermining the confidence of the country’s economy.

In a presentation dubbed: “Building The Ghana We Want”, at the UPSA  in Accra on Thursday, October 27, 2022, Mr Mahama accused the incumbent government of overspending.

According to him, “tackling debt and deficit challenges would mark the beginning of the much-needed recovery”.

Speaking on alternatives to revive the economy, former President Mahama indicated that the government must “reduce public debt, debt service obligations and create fiscal space”.

Achievement Of  Debt Restructuring

Throwing more light on reducing public debt and creating fiscal space, John Mahama indicated that “an immediate moratorium must be placed on all non-concessional borrowing”.

Also, the “government must actively canvass our bilateral partners for more concessional financing and grants”.

Again, “there must be a stop to a Central Bank financing of government above the 5% threshold. The current printing of money to finance Government’s deficit is further fueling inflation”.

Moreover, the “government must stop collateralizing statutory funds for the purpose of taking on more loans. The wanton collateralization has been unhelpful.”

Mr Mahama also believes the incumbent government must reduce the number of government appointees in offices to cut expenditures.

According to him, most government appointees perform similar and overlapping functions, which one ministry is mandated to undertake.

He was of the view that the creation of offices for the secretariat of the ‘One District One Factory’, Free Senior High School, The National Entrepreneurship and Innovation Programme, National Employment Agency, MASLOC, Ghana Enterprises Agency and others are not necessary since all those departments can be fixed under the existing ministries.

Addressing the audience on the recent decision by the majority caucus in parliament concerning the dismissal of the Finance Minister,  he said, “the President must not only replace the finance minister, but he must also reconstitute and control the Economic Management Team himself”.

Role Of The Citizens In Ensuring Economic Stability

Mr Mahama further called on Ghanaians to appreciate and value made in Ghana products.

He appealed to Ghanaians to ensure they buy made-in-Ghana products rather than importing consumable and non-consumable products from other countries.

“If we must buy consumables or food products, let us choose that rice or chicken that is produced locally so that it doesn’t become necessary to find millions of dollars to import products.

“Let us consciously eat more of our local food like yam, local grains, cassava, beans, local fruits, and vegetables”.