Fiscal Responsibility Council needed to tame public purse – Economist

An Economist and Lecturer at the Economics Department of the University of Ghana, Eric Osei Assibey says in response to Ghana’s debt problems, the state must institute an Independent Fiscal Responsibility Council to help tame government’s excessive expenditure.

Dr. Assibey says such a body must be advanced ahead of next year’s election. This he adds is to ensure “we don’t place political interest ahead of national interest.”

Speaking on Si Me So on Kasapa 102.3 FM Monday Dr Assibey argued that lack of economic prudence by government is the bane of the country’s growing debt.

Ghana’s public debt stock has now hit GH¢94.5billion as at June this year.

Ghana’s debt is now above pre-Heavily Indebted and Poor Country (HIPC) levels, according to an IMF assessment.

“Government should have prioritized a chunk of its borrowings into critical development projects. It could have seen an increase in your productive base. That could make your debt sustainable.

“Every country has debt issues, but what matters is the investment these borrowings are channeled into or what is being used for. If upon all the debt levels and your economy still shrinks, then it leaves much to be desired.”