Head of the Department of Economics at the University of Ghana, Prof. William Baah-Boateng, has called for prudent expenditure management by the managers of Ghana’s economy.
He said this when the Finance Ministry in collaboration with the University of Ghana, convened a Quarterly Economic Roundtable at the University of Ghana on Monday.
Perof Baah-Boateng said “We need to take a very good look at the expenditure side of the budget.”
Prof. Baah-Boateng suggested reducing the weight of government on the economy and reevaluating the role of politics in economic decisions.
On the topic of debt dynamics, Prof. Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), provided insights into Ghana’s borrowing patterns. He highlighted the shift from multilateral debts to commercial market borrowing at higher interest rates.
“We want to break from the vicious cycle of debt accumulation and then negotiation, forgiveness, and then we go back again to debt accumulation,” Prof. Quartey emphasized.
The roundtable also addressed monetary policy dynamics, with Professor Agyapomaa Gyeke-Dako of the University of Ghana Business School discussing the challenges faced by Ghana’s Central Bank.
She raised critical questions about the effectiveness of current monetary policy approaches and the trade-offs involved in managing inflation and supporting economic growth.
The discussions revealed a consensus on the need for a more collaborative approach to economic management. Participants agreed that addressing Ghana’s economic challenges requires a combination of fiscal discipline, innovative debt management strategies, and carefully calibrated monetary policies.
The Finance Ministry’s initiative to engage academia in economic policy discussions marks a significant step towards more inclusive and informed decision-making. As Ghana navigates its economic challenges, the insights and recommendations from this roundtable are expected to play a crucial role in shaping future policies and strategies for sustainable economic growth.
