An Economist and Research fellow at the Institute of Fiscal Studies (IFS) says Public investment, a major component of total national capital investment must be revamped to bolster confidence in the economy.
Dr Said Boakye bemoaned that the future is not so bright, if managers of the economy don’t invest in things that will help grow the economy.
This is despite the Finance Minister’s claims that the Ghanaian economy has seen a complete turnaround in 32 months since the Akufo-Addo administration took over the running of the economy.
Presenting the Financial Policy of the government for 2020 in Parliament on Wednesday, the Minister for Finance Ken Ofori Atta said economic growth has rebounded strongly from 3.4 per cent in 2016 to an average of over 7 per cent during the past 2 years.
He said the inflation rate has fallen from 15.4 per cent in December 2016 to 7.6 per cent in September 2019, the lowest since March 1992 adding that the 91-day treasury bill rate also fell steadily from nearly 17 per cent in December 2016 and now stands at 14.7 per cent;
“The fiscal deficit has declined from 6.5 per cent of GDP in 2016 to 4.5 percent at the end of the third quarter of 2019; On the external front, the trade deficit has improved from US$1.8 billion in 2016 to a surplus of US$2.6 billion in August 2019” he told the Parliamentarians.
However, in an interview with host Kweku Owusu Adjei, on Anopa Kasapa on Kasapa 102.5 FM, Dr Said Boakye made a strong case for the NPP government to change the status quo and decrease consumption which only adds to borrowing by the country.
He predicted a looming danger in the Ghanaian economy, if Public investment continues on the same trajectory.
“Public Investment keeps suffering drastically and the future potential of the economy is bleak. We need to invest in real assets. This will go a long way in the future.” he stressed.
On the prospects of the 2020 Budget, Dr Boakye noted that the commitment to the budget is very important otherwise it will be business as usual.
He said h’es enthused about the Fiscal Responsibility Act and the Earmarked Funds Capping and Realignment Bill, 2017, because “fiscal overruns even compounds our problems more.”