Budget Overruns Gov’t urged to control overspending

Many economists have expressed concern over government’s excessive spending including the Bank of Ghana Governor, Dr. Abdul-Nashiru Issahaku.

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Seth Terkper, Finance Minister play

Seth Terkper, Finance Minister

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The President of the Chartered Institute of Accountants Ghana (ICAG), Prof. Kwame B. Omane-Antwi has asked government to control overspending.

According to him, government spending has to be disciplined since it is the only way to spur growth.

“Government spending has to be disciplined, and if we want to grow as a country you need to cut your coat according to your cloth; the overspending is terrible, and if you are using more than 70% of your revenue to pay debts it is not good for development,” he said, the Business and Financial Times quoted him as saying.

READ MORE: Fitch predicts fiscal slippage ahead of Nov. polls

Many economists have also expressed concern over government’s excessive spending, including the Bank of Ghana Governor, Dr. Abdul-Nashiru Issahaku.

He told Reuters news agency in April that he would work with the Finance Ministry and other agencies to maintain spending limits and also follow through IMF’s programme. "Elections or no elections, I remain committed to the programmes and we cannot afford to derail."

Ghana heads to the Polls in November and part of the condition under the IFM programme is to check election year spending.

But credit ratings agency, Fitch, has predicted “fiscal slippage” ahead of November 3 elections.

In a statement issued by Fitch in April on Ghana’s credit worthiness, the ratings agency said the slippage would increase inflationary and financing pressures.

READ MORE: Ghanaian economy in for trouble- Fitch

In addition, Fitch said a further decline in commodity prices would negatively impact growth and exacerbate Ghana’s twin deficits.

“Fiscal slippage ahead of the November elections would increase inflationary and financing pressures.” “

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