The impact is not clear – Prof. Gatsi replies Mahama, Bawumia on government's expenditure cuts

The Dean of the University of Cape Coast Business School, Professor John Gatsi, has addressed the various claims made by former president John Dramani Mahama and Vice President Dr. Mahamudu Bawumia regarding government spending.

Mahama stated that the government had not reduced expenditure despite the current economic challenges, while Dr. Bawumia argued that despite economic challenges, the current administration had successfully cut spending and managed the economy effectively.

However, Prof. Gatsi noted that while there had been some reduction in spending in certain areas recently, the expenditure cuts for this year have not had a significant impact.

"It is not very clear what impact the government's claimed reduction in expenditure has had," he said during an interview on Accra-based JoyFM.

Prof. Gatsi emphasized that the current expenditure cuts have not made a noticeable difference, unlike in previous years when spending was reduced by cutting the salaries of key ministers during tough times.

He suggested that a more substantial spending cut was necessary to create space for economic growth.

Additionally, Prof. Gatsi highlighted the importance of developing strategies to increase domestic revenue without negatively affecting the business community.

“But while we are doing this, we are disrupting the business environment, and that is putting more burden on people, so that is not the best way to approach it, so there should be a balance in all these measures that are taken,” the UCC Dean explained.

NOQ

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