Seth Terpker weighs in on impact of possible lockdown on economy

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Former Finance Minister, Seth Terkper.

Former Finance Minister, Seth Terkper, has waded into the debate over whether or not the government should put the country on lockdown following the continuous surge in confirmed coronavirus cases.

Speaking Thursday
on current affairs programme Upfront on JoyNews, Mr. Terkper, weighed in on the
possible impact such a decision would have on the economy and suggested Ghanaians
are told what the repercussion will be.

This is, because, the government currently does not have the fiscal space and would, therefore, have to resort to borrowing to support the economy, he said.

President Nana Akufo-Addo earlier at a meeting with the leadership of the Trades Union Congress (TUC) on Thursday, said government is not considering a lockdown currently because of the implications it will have on many people and the economy at large.

 “If you lockdown Accra, what are the consequences? If we lockdown the country, what are the consequences? A responsible government is required to look at all this before decisions are made and that is the exercise on which we are currently engaged,” the president argued.

Commenting on
the issue, the former Finance Minister noted that government does not have the fiscal
capability to support the economy should there be a lockdown because “the consequences
will be a higher deficit…”

“It is
important for the government to acknowledge that some of the donors that would
have come to our aid are themselves going through critical crisis,” he told
host, Winston Amoah.

“I wouldn’t blame it on non-performance but we had issues. We
were keen to showing the world that we were doing well when in fact we had a
deficit which is already over and above the 5% prescribed by the Fiscal
Responsibility Act, Seth Terkper said.

Meanwhile, the
Finance Minister, Ken Ofori-Atta, is expected in Parliament on Friday, March
27, to defend a stimulus package the government has put together to support businesses
and others.

Watch the full discussion below



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