Ghana’s current economic challenges partly due to overspending in 2020 – ISSER

The Institute of Statistical Social and Economic Research (ISSER) has attributed Ghana’s current economic woes partly due to overspending on capital projects amid political and campaign promises. This is according to the 2021 and 2022 Economic Outlook Report released by the Institute. Presenting the findings of the report in Accra, Director of Research at ISSER, Professor Peter Quartey, said the research revealed that government had overspent its budget prior to the 2020 general election. He however said should government cut its overspending on capital projects, especially during election periods, the country will begin to witness significant changes in its finances. “When you look at our expenditure during political periods, I think election can also be blamed for where we are at the current economic situation. We overspent on so many projects, we cut sod for a lot of projects that we have to borrow to fund them,” he is quoted by Joy Business. “…So, in the end, we use three years to clear the mess. Every election year we enter into such situations then two years after election, there are fiscal challenges," Prof. Quartey said. In addition to this, ISSER has admonished President Nana Addo Dankwa Akufo-Addo to reduce the size of the current government as part of efforts to cut down spending and boost investor confidence in the economy. “I can’t put a number to how many ministers the government should have but the President must look at merging some of the ministries and get the work done. There shouldn’t be duplication in any role," he said. Touching on the controversial Electronic Transfer Levy, the ISSER Director called for a downward review of the 1.5 percent rate imposed on transactions. Meanwhile, a review of the economic performance of Ghana in the third quarter of 2022 noted government must begin to critically address significant loopholes in the tax system, among others. MA/FNOQ Watch the latest episode of BizTech below:

The Institute of Statistical Social and Economic Research (ISSER) has attributed Ghana’s current economic woes partly due to overspending on capital projects amid political and campaign promises. This is according to the 2021 and 2022 Economic Outlook Report released by the Institute. Presenting the findings of the report in Accra, Director of Research at ISSER, Professor Peter Quartey, said the research revealed that government had overspent its budget prior to the 2020 general election. He however said should government cut its overspending on capital projects, especially during election periods, the country will begin to witness significant changes in its finances. “When you look at our expenditure during political periods, I think election can also be blamed for where we are at the current economic situation. We overspent on so many projects, we cut sod for a lot of projects that we have to borrow to fund them,” he is quoted by Joy Business. “…So, in the end, we use three years to clear the mess. Every election year we enter into such situations then two years after election, there are fiscal challenges," Prof. Quartey said. In addition to this, ISSER has admonished President Nana Addo Dankwa Akufo-Addo to reduce the size of the current government as part of efforts to cut down spending and boost investor confidence in the economy. “I can’t put a number to how many ministers the government should have but the President must look at merging some of the ministries and get the work done. There shouldn’t be duplication in any role," he said. Touching on the controversial Electronic Transfer Levy, the ISSER Director called for a downward review of the 1.5 percent rate imposed on transactions. Meanwhile, a review of the economic performance of Ghana in the third quarter of 2022 noted government must begin to critically address significant loopholes in the tax system, among others. MA/FNOQ Watch the latest episode of BizTech below: