Overspending on election can derail economy for 22 years - Economist

Economist, Professor Lord Mensah, has said the local economy may run into shambles if government overspends in the upcoming general elections.

According to him, government must list the items it will fund in order of priority to prevent the derailing of the economy in the next 22 years.

Speaking on Joy News' AM Show Professor Lord Mensah said, "Access to the international market is not there to rake in expenditure like it used to be. If we overspend it will derail the economy for the next 22 years. We don’t have enough room to spend."

“There is no room to raise the money that will call for the kind of election-year expenditure. It is not there, our hands are tied. If government has something to do, they may have to prioritise, other than that, bouncing back will be a problem,” he added.

Prof. Mensah stressed that, staying fiscally disciplined, and prioritising expenditure in 2024 will be crucial to the recovery of the local economy.

He also urged government to secure a deal for the external debt exchange programme.

Meanwhile the International Monetary Fund said it is optimistic Ghana will clinch a deal with bilateral creditors.

SA/MA

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