According to the research institute, the government must slow down on its desire to deliver on campaign promises as it is hurting the economy.
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Nana Addo borrowing not the answer to the 'mess' of the economy - Research institute
The Institute for Fiscal Studies (IFS) has said the government of President Nana Addo Dankwa Akufo-Addo "borrowing is not the answer to the state of the economy."
President Nana Addo Dankwa Akufo-Addo
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It called on the government to be bold and take difficult decisions to unlock the potential of the economy and added that the economy is not in the position to support the delivery of the numerous promises the NPP made to Ghanaians in 2016.
A senior research fellow at IFS Dr. Saeed Boakye in an interview on Accra-based Starr FM said "The NPP made so many promises before elections 2016 and I thought knowing the state of the economy, they would have redesigned their promises. Because the government wants to fulfill its promises at all costs against the economic standing of the country, there is so much pressure and money that is not in the system like before.
"Borrowing is not the answer to the state of the economy. We need to figure out how to spend the resources we have. We should spend within our means so we can avoid debts we may not be able to pay in the future. Ex. President Kufuor and the Late President. Mills were also leaders of parties who made promises but had to shelf some of them for some time because of the state of the economy when they took over. I think the sitting government should slow down on some of its promises to help stabilize the economy."
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The reaction comes after the Institute of Statistical, Social and Economic Research (ISSER) said the outlook of the Ghanaian economy was bright, but difficult decisions such as slashing tax exemptions, increasing tax revenues and targeting social interventions better would propel the economy into higher performance.
ISSER in its report presented on the latest State of the Ghanaian Economy stated that "Import exemptions from international trade fell to 24.8 percent and 19.2 percent of total revenue in 2016 and 2017 respectively, but in 2018, exemptions on imports increased to 33.6 percent of total revenue from international trade, translating into GH¢2.047 billion out of GH¢6.102 billion realised from international trade taxes."
The Director of ISSER, Professor Peter Quartey, stressed that the time had come for the government to prioritise domestic revenue mobilisation and be disciplined in expenditure to firm up the hope of a robust economy.
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