The Institute of Statistical Social and Economic Research (ISSER) of the University of Ghana says there is a need for Ghana to shift focus towards investment rather than consumption.
ISSER in its State of the Ghanaian Economy Report (SGER) of 2022 and review of 2023 Quarter Three Economic Performance revealed a budget deficit of 10.7 per cent exceeding the 6.6 per cent target in 2022.
This, according to the report shows the government’s consistent overspending of its budget yearly by increasing margins.
As such, the report concluded that government should cut down its expenditure due to the approach of the 2024 General elections and the focus on breaking the eight.
In an interview on JOY FM, the Director of ISSER, Professor Peter Quartey addressed the issue of government revenue growth and continuous deviancy from revenue targets.
He explained that government’s revenue increased by 11.96% in the year 2021, 22.84% in 2022 and peaked at 34.29% in 2023.
Prof. Peter Quartey argued that this trend clearly shows that government revenue charges have grown over the years with its targets unmet and posing challenges to the Ghanaian Economy.
ISSER indicated that the implementation of the Ghana Integrated Financial Management Information System (GIFMIS) to enhance the provision of public services through accurate financial reporting for nationwide growth has faced challenges since the tenure of Hon. Seth Tepe, the former finance minister.
Professor Quartey attributed the government’s overspending to the country’s mismanagement of funds received from internal and external sources.
After identifying the loopholes in government expenditure, the director of ISSER urged the government to place more value on money and engage more in investment rather than consumption.
Read more stories here
Source: Angelina Riley Hayford/ATLFMNEWS
