Fiscal Discipline Key to Addressing Economic Challenges, says Expert
Richard Kojo Elimah, the Executive Director for the Centre for Social Impact Studies (CeSIS), has highlighted fiscal discipline as the crucial factor needed to address Ghana’s economic problems.
According to Elimah, Ghana’s fiscal indiscipline is the root cause of the country’s economic challenges and its recurring reliance on the International Monetary Fund (IMF).
In an interview on Nkwantannanso with George Adjei on May 29 , Mr Elimah likened the IMF to a headmaster seeking to discipline Ghana due to its fiscal mismanagement.
He expressed his concern, saying, “We do not cut our coat according to our size. That is why we always go to IMF.”
The Executive Director emphasized the importance of a disciplined government that spends within its means and does not exceed its revenue.
He stated, “We need a government that can prioritize and not use politics to start flamboyant projects.”
Furthermore, Mr Elimah urged the government to focus on the outcomes of social interventions rather than solely on the inputs.
He stated, “If the social interventions do not generate any positive outcomes, then we must either stop or review it.”
The Executive Board of the IMF approved a 36-month arrangement under the Extended Credit Facility (ECF) in an amount equivalent to US$3 billion.
The government has told the IMF that it intends to conduct a comprehensive review of all its flagship programmes as part of the US$3 billion IMF bailout package, as it seeks to navigate through the current economic crisis.
