Ghana’s former Minister for Finance, Seth Terkper, says the government needs a credible source of support like the International Monetary Fund (IMF) in the management of Ghana’s economy.
According to him, for a nation to see economic prosperity the government either has to engage in the prudent management of the economy “or in partnership with a body which is more credible.”
“Your (government) own revenue is being wasted on big, big agenda items and mind you, the fact that the money is being spent out of the budget on the Cathedral and other things which are coming out now, it does not add positively to our story. Because it means that the budget is not reflecting the expenditure.
“So all that an analyst has to do is to take the amount that was spent outside the budget and add it to the budget numbers and you will get a new deficit figure which is much higher. Because the money came from revenue unless of course the revenue was also not recorded,” he told Francis Abban on Morning Starr Tuesday, June 28, 2022.
Mr. Terkper reiterated that it takes a long period of time for a nation to have prudent economic management in place.
“You program over time even if it’s a decade to win yourself off the International Monetary Fund (IMF),” he added.
Meanwhile, the Dean Dean of Cape Coast University Business School, Professor John Gatsi has blamed Ghana’s economic woes on the Finance Minister, Ken Ofori-Atta.
His comment comes on the back of several tweets by a leading member of the NPP, Gabby Asare Otchere-Darko Monday suggesting that Ghana may need help to win investor confidence in the economy as expected revenue from the controversial E-levy tumbles.
In a series of tweets, Mr Otchere-Darko said inflows from the much-touted Electronic Transaction have delivered only 10 per cent of the expected revenue.
Speaking on Starr FM. Mr Gatsi disclosed that the borrowing spree by the Finance Minister should be a major concern to the nation.
“He cannot manage the Ghanaian economy only in 2022, he has been managing the economy since 2017 and cumulatively, his policy in terms of fiscal management has actually created a huge problem for this country.
“And that I do not think that he himself is not aware. He is the one who presents the kind of borrowing that we need to do and that borrowing has created problems for the country. Therefore, we cannot blame any other person than the Finance Minister.
He continued: “Most of the things he comes to Parliament to present, that is his belief that he has presented to Parliament. So we should hold him on those things rather than extending it to some individuals who have been considered to be of value to the government. But may not be in charge directly of affairs of this country.”
Prof. Gatsi further stated that the Finance Minister must justify to Ghanaians the benefits his borrowing spree has brought to the country.
