Economist, Professor Godfred Bokpin is warning that Ghana could return to the Worldwide Financial Fund (IMF) for support in the following two a long time if the govt fails to handle expenditure for the election yr.
According to him, the country’s debt ratio is reaching an unsustainable predicament which ought to be dealt with straight away just before escalating to larger levels.
He was talking at IMANI’s public lecture on the theme “Is Ghana’s credit card debt sustainability less than really serious threat just after the IMF method?”
Prof Bopkin stated “The discussions have been significant on the country’s public credit card debt and it is sustainability immediately after the Exterior Credit rating Facility plan with the IMF We never have a ample fiscal place so any election-connected expenditure beyond sure amount may well be the motive why Ghana could go for its 17th IMF plan, it is authentic.”
He included, “Because we have noticed that the deficit turns to escalate in each individual election 12 months since 1992 with the exception of 2004″ he famous, but speedy to add that.Authorities will cite the fiscal responsibility act that has cap the numerical worth to 5 per cent of GDP but the problem is compliance and enforcement for the reason that we use to have a Financial institution of Ghana Act that will allow the central financial institution to do the deficit financing to the tune of 10 per cent of full revenue but we under no circumstances revered that law so what can make us believe that we will regard this a single and who is heading to do the Monitoring”.
He concludes that the final four months of every single election year, the economy is still left devoid of checking.
Prof. Bokpin has also blamed the gradual growth in the non-oil sector of the financial state on the incapacity of the authorities to allocate substantial resources for infrastructure initiatives.
According to him, the region is probable to encounter a non-development if the govt does not pay awareness to cash expenditure on infrastructure.
The oil and fuel sector has consistently led expansion for the country’s economy leaving the non-oil sector, a circumstance Professor Bokpin describes as a danger.