Find alternative funding for new regions - Economist tells Ofori Atta

President Akufo-Addo during the announcement of the Nominee for the Ministry for Regional Re-organisation and Development indicated the creation of four new regions to facilitate decentralisation in the country.

He explained that the creation of new regions will also come with other obligations which include funding the new regions alongside the old ones.

He argued that the country will be faced with huge financial challenges if the government fails to assign finances to the additional regions.

“The rising fixed cost of government is largely the making of politicians. For instance, the creation of an additional 46 district assemblies and 45 new parliamentary seats in 2012, ratcheted up the fixed cost of government.”

But Dr Amoako-Tuffour in his open letter to Ken Ofori-Atta said previous experiences with the creation of additional 46 district assemblies and 45 new parliamentary seats in 2012, increased the fixed cost of government as much thought was not given to what those actions meant for public finances.

“The cost of government was brushed aside by a premature exuberance about the coming oil revenues. The 1992 Constitution lacks the mechanism to ensure a fine balance between political expediency and fiscal sustainability,” the open letter stated.

At the time, each of the 46 districts was given GHc100,000 to purchase equipment and furniture.

Meanwhile, the economist has advised on managing government’s expenditure.

Some of the suggestions are to reduce ghost names payroll fraud which is prevalent in the education health as well as judicial sectors. He also urged him to make good use of the Auditor-General’s report on misappropriation and wastage in the public sector.

Eyewitness? Submit your stories now via social or: