A lecturer at the University of Ghana Business School (UGBS), the new economic stimulus measures announced by Finance Minister Ken Ofori-Atta are a positive sign for international communities.
In an interview with JoyNews’ Newsfile on Saturday, Dr Agyapomaa Gyeke-Dako said the moves would boost investor confidence in the country.
“If I look at some of the things they described, one being the 30% pay cut for government employees and the moratorium on imported vehicles and the ban on travel restrictions that we have, in my mind , what this means is that they are trying to show the world that they are ready to consolidate and improve their budgetary situation,” she told Samson Lardy Anyenini.
The economist’s comment comes after Finance Minister Ken Ofori-Atta on Thursday revealed a wide range of plans to save the country’s economy.
The Minister, during a press conference in Accra, expressed his optimism that the measures will go a long way in protecting citizens amid the economic downturn.
These measures include spending cuts, an intense revenue mobilization campaign, fuel price mitigation and foreign currency financing.
According to Dr Gyeke-Dako, although the measures are what a prudent leader would take to save the economy, the government should be commended as these measures have not been implemented over the years.
On the other hand, she urged the government to ensure that the measures are effectively implemented.
“If we say we are cutting travel spending, other discretionary spending, we have to make sure that we make it transparent and visible enough for Ghanaians to see that this is actually what we are doing,” he said. she adds.
Meanwhile, former finance minister Seth Terkper has said new spending measures announced by the government to protect citizens are not substantial and effective enough to alleviate the current economic crisis.
He says that due to the struggling nature of the country’s domestic markets, the government may need to continue borrowing to pay off existing debts, a situation he says will cause the deficit to rise.
Terkper stressed that the new measures outlined by Finance Minister Ken Ofori-Atta will not make any difference to the deficit, borrowing and debt situation; yet, can see concrete numbers.
“It’s not about one or two measures; it’s positive in a sense even if it’s not substantial because a lot of the spending doesn’t go into that area. By the way, we have to borrow to refinance [and] we have to borrow to repay the old loan. This is the situation we are facing.
“Is our internal market so big and if we are prevented from going to external markets, then I am afraid; the issues that GUTA raises are going to be worse because the government is coming directly to the national markets to borrow and they are going to raise the interest rates, and that is why the BoG is raising the policy rate as a signal,” he said. declared.