Government needs to make bold decisions to address fiscal challenges – Terkper

Economy to experience a downslide with urgent govt interventions

Government should listen to expert advice, Terkper

Government can take cues from international bodies

Former finance minister, Seth Terkper, has charged government to make bold commitments in addressing the grave fiscal challenges the economy is facing.

He believes that this is the only way to boost investor confidence and help stabilise the cedi adding that the 20% cut in expenditure will not do much for the country.

Speaking to Joy Business, Mr. Terkper stated that government is massaging some of the fiscal data being put out by the government.

“If we [Ghana Government] do not come up with policies that the market will see us as credible, the multilateral institutions will see as credible, then it means it will be a continuous downwards slide-in economy. If we come up with those measures which normally takes time as you have just alluded – two-three years, sometimes four years – then they may be some hope”.

The minister further lamented government’s failure to heed several warnings from experts, Ghanaian academicians, economists, analysts and market watchers about the country’s plight.

“Let me say that as Ghanaians, we should not always think that it is only outsiders [foreigners] who are telling the Ghanaian story. I’m saying that because some of the warnings and signals were being given by Bank of Ghana in its Monetary Policy Reports, at formal functions. Sometimes you hear the Governors, sometimes you see the statements.”

“I’m not saying that others are not expressing concerns. That’s not my point. I’m saying that inwardly, we can go take cues from our own”, the former Finance Minister said.

Furthermore, he said “If you take the oil sector, they [economists, analysts, market watchers] have been coming out with solutions, and other institutions have been coming out; and in fairness when things were good, they pointed out the positive. So, I think that if we listen to them, they have expertise”.

Continuing he stated, “the Institute of Economic Affairs – I couldn’t attend their recent synopsis presented by Dr. Kwakye – whom by the way once worked with the Central Bank (Bank of Ghana). So, he must have some insight as to what he is saying. He was also our representative in the IMF office in Washington and you should listen to those people because they are very knowledgeable and some of these concerns have been expressed.”