FLASHBACK: Three things Prof. Adei has tasked government to do amid economic crunch

An economist, Professor Stephen Adei, proposed some measures for the government to consider in solving the country's problem.

These measures were downsizing the government's size, cutting the pay of government officials by 25% to save the economy, and also to review free SHS.

“So don’t let anybody think that when they cut these salaries then the problem is solved altogether because we are talking about half a billion when we need billions.

"I expect [the President] to find ways of cutting expenditure, increase revenue, cutting off the size in the government," he stressed.

Read the full story originally published on March 24, 2022, by GhanaWeb

Government admits country economically strained

Prof. Stephen Adei proposes drastic measures

He wants Free SHS review and salaries of executive cut

Professor Stephen Adei, a former rector of the Ghana Institute of Management and Public Administration (GIMPA) has in recent weeks publicly advised the government on measures the executive especially can take in easing the economic crunch the country is facing

Government has admitted to the economic hurdles and has since undertaken a number of measures aimed at easing the strain and hardship that citizens are facing.

Prof. Adei was a vocal critic of the Mahama administration and had been criticised for being soft on the current government.

He has, however, preferred economic solutions to the government in interviews with two Accra-based news outlets - TV3 recently and Joy News weeks back.

GhanaWeb looks at three measures he has tasked the government to work on:

Downsize your government

In his latest advice to the Nana Addo Dankwa Akufo-Addo-led government, Prof. Adei has asked that the size of the government be downsized to cut costs and save the country some money.

In an interview with TV3, the former Board Chair of the Ghana Revenue Authority (GRA), said the salary cuts he proposed for the executive and legislature are not significant savings but merely a way of showing leadership by example.

“So don’t let anybody think that when they cut these salaries then the problem is solved altogether because we are talking about half a billion when we need billions.

"I expect [the President] to find ways of cutting expenditure, increase revenue, cutting off the size in the government," he stressed.

Cut pay by 25% to save the economy

In his interview with Joy News two weeks ago, Professor Adei, made a strong case tasking government to reduce its expenditure in order to save the economy.

According to him, the only way to salvage the economy which is facing some challenges is through a reduction in the earnings of government appointees and other Article 71 officeholders.

He explained, “Why should a country like Ghana have about four or five ministries of transport? … It’s incredible. In other countries, we have one minister, and then we have technical heads of these institutions. So we can reduce the size of government … Actually, under this circumstance, I think that the executive and other things must have a pay cut; maybe 25% will do.

"If the government does not consider a reduction in some of its expenditure, the economy may experience a further decline; which could lead to a worsening of the current situation."

Review free SHS

In the same interview, he urged the government to review its flagship Free Senior High School policy.

The economist, who is the current Chairman of the National Development Planning Commission stated that the flagship programme has stretched the already impacted economy seeing that government allocates about GHC7.5 billion every year to the programme.

Prof. Adei explained, “We have to look at it again. I think that there are certain schools which we should make autonomous and fee-paying and people will go there, but then make sure there are good community schools for everybody else. So, the Achimotas and the Wey Gey Heys, which people want their children to go, let them pay.”

“Only a small proportion of the poor come to Achimota, let the rich go there and pay. Use the Achimota funds to have very good schools in every district so that they can be there and don’t have to travel. They just come from the villages,” he added.

Watch the latest edition of BizTech and Biz Headlines below:







Watch the latest edition of Business Moments below: