President Nana Addo Dankwa Akufo-Addo has given the strongest indication yet that “tough, prudent and innovative” measures will be adopted to restore the country to its economic viability.
According to him, the last eight years have seen Ghana’s debt stock rise to 74 per cent of gross domestic product (GDP), a situation that leaves the economy on the brink of collapse.
“There is practically no fiscal space left,” he stressed.
But the president assured that: “I will not allow the economy to collapse under my watch.”
President Akufo-Addo gave this assurance in his maiden state-of-the-nation address to Parliament on Tuesday, February 21.
He was in the House as per Article 67 of the 1992 Constitution.
The President, who relished returning to a Chamber he spent “12 memorable years” in, was concerned government’s expenditure has extensively been consumed by wages and salaries, interest payments and amortization and statutory payments in the past eight years.
“These three account for 99 per cent of government revenue,” he observed, noting that borrowing has become the first port of call in getting funds for projects.
“We cannot continue this way with our public finances,” he pointed out.
He explained that resorting to borrowing “for any additional expenditure to meet the aspirations of our people is also not sustainable”.
He therefore outlined measures mapped out to turn the tide.
“We will reduce significantly the fiscal deficit this year,” he mentioned, among others such as embarking on institutional reforms and cutting waste.
“I am absolute in my confidence that we have the programme, the competence, the commitment, and the goodwill of the people to turn things round [and] by the grace of God we will succeed.”
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