Economist and lecturer at the University of Ghana Business School Dr. Laud Mensah has cautioned government not to take advantage of the election period to overspend.
His call comes on the heels of various predictions by some experts that government is likely to overrun this year’s budget, especially when the country goes to the polls this year.
The World Bank and the International Monetary Fund have predicted a positive economic outlook for Ghana, in the coming years, but Dr. Mensah Speaking on 3FMS BUSINESS WEEKLY, said in order to achieve this economic growth, government must spend.
“Our projects are not supposed to be election oriented projects; they are supposed to be there. If we look at our achievement as a country, we belong to the lower middle income earning. So if we turn our projects to election oriented, then it will be doom for the country. I don’t believe in the fallacy that it’s an election year, so governments must spend money to buy votes. Your works throughout your tenure should be convincing enough to either retain or remove you from power”, he emphasized.
Dr. Mensah was optimistic that moderation on the part of government could save the country from pressures of excessive borrowing from external donors.
“As a country if your ways of generating funds are blocked, then you need to spend in moderation. Look at a way of generating to match up with your expenditure. If you are making projection with world market prices and are raising your hopes, then this is not the time to spend more. Cut down. Spend wisely and invest more into areas that can bring you more revenue”, he explained.