Minority have been nationalist, patriotic in demanding downsizing of government – Economist

Ghanaian economist Julius Gyimah has asked Ghanaians to commend the Minority in Parliament for keeping the government on its toes.

He said their call on the government to cut down on expenditure and downsizing of the government to meet the needs of our current economic crisis was commendable.

He claimed that, in light of our economic challenges, the government has been advised to reduce spending and downsize.

”The call on the government to cut down expenditure and downsize government has been one of the things that Ghanaians have been talking about. It would be prudent for the government to focus on that direction. We have to commend the Minority in Parliament. We look at the bigger picture, our revenues are dwindling, our monies are coming down, government revenue is not good, and expenditure is the same. We haven’t seen that fiscal discipline Ghanaians are expecting.

“In the mid-year budget review last year, the government did something by cutting public sector worker salaries by 30%, and fuel allocation was also reduced. In order to save money, the use of V8 vehicles was also limited. These are all included in the cut. Thankfully, the Minority has been nationalistic and patriotic this time around and has remained committed to the interests of the state. They have demonstrated that Ghana should be first.”

He said, ”the revenue of the government has been low, and yet, expenditure remains the same with an increase in the budget deficit, challenges with our inflation, the challenges we are facing with the exchange rate with an economy that is import driven is leaving us with a trade deficit, and that is why we have decided to go back the IMF for short term liquidity support to help us stabilise the economy”.

On the passage of the three new taxes, he said both sides of the house needed to have agreed to help the government rake on some money to help it address the challenges we face today.