Prof. Peter Quartey
PROF. PETER Quartey, Head of the Institute for Statistical, Social and Economic Research (ISSER), has asked government to ensure that its expenditures were productive.
According to him, the IMF’s assessment of Ghana as a low-income developing country, a description which the Bretton Woods institution has used from as far back as 2017, lacks a broader developmental context.
Prof. Quartey acknowledged that though the classification by the IMF pointed to Ghana’s shortfalls when it came to revenue mobilisation and expenditure management, in an era of COVID-19, focus should be on the productive nature of government’s expenditure and not necessarily on the expenditure numbers.
“We are very much aware that our Revenue/GDP ratio is below the sub-Saharan Africa average, and we need to mobilise more resources. We also know that our expenditure as a percentage of GDP is also higher than the average. But, having said that, we also have to focus more on our resilient economic sectors, and also the recovery. If you look at our growth projections, we are projecting a modest growth rate that is quite respectable across the region and across the globe. So that is something we should also look at.
“We shouldn’t just focus on our debt, our revenue, our expenditure and deficit. We should also look at economic growth, economic progress, human development in terms of access to education and health. Because after all, we need to fight this pandemic, so we live to see tomorrow. So, if the government borrows to spend, of course, it’s a problem. But, it’s not too much of a problem. We ought to look at the broader picture, what benefit is that going to yield to the Ghanaian economy. For me, that’s the way to go. Borrow, but borrow responsibly, invest into productive activities that should be able to pay off the loan,” he stated.
– Citibusiness