Government must prioritize strategic investments to avoid debt challenges - Economist

Dr. Benjamin Amoah, a Senior Lecturer at the University of Ghana Business School, has urged the government not to repeat past debt-related mistakes.

In an exclusive interview with the Ghana News Agency (GNA), he stressed the critical need for strategic borrowing as the country prepared to potentially return to the international debt markets.

Dr. Amoah expressed concern that the availability of support from international institutions like the IMF and World Bank could encourage fiscal irresponsibility.

“The knowledge of a safety net can lead to complacency and irresponsible economic management. Countries may be tempted to overspend, knowing that support is available during crises. This undermines the need for sound fiscal policies and sustainable economic growth,” he said.

The economist emphasized the importance of discipline in spending and living within the country’s means.

He urged the government to prioritize investments with direct and measurable returns to ensure the sustainability of future debt obligations.

Dr. Amoah also said addressing the potential for overspending due to the presence of international financial institutions required a strong commitment to fiscal discipline and responsible economic management.

He also stated that the country was currently facing many challenges, ranging from unemployment, low tax net and high expenditure.

The Economics expert advised the government to incentivise the private sector to encourage them to employ more people to address unemployment challenges in the country.

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