An economist and investment consultant, Mr Kwame Pianim has noted that economic issues in Ghana are so broad therefore requires various stakeholders from industry, academia and the international community to speak about them and to offer different perspectives for consideration by policymakers.
He noted that the monetary policy rate is a key indicator of how the Bank of Ghana (BoG) perceives the economy.
Speaking about the policy rate and other macroeconomic variables during the IMANI-GIZ Reform Dialogue on Ghana’s Macroeconomic Environment, he noted that when the Central Bank increases its policy rate, it is indicatative of the fact that the central bank is not comfortable with the fiscal stance of the government.
The stalwart of the New Patriotic Party (NPP) noted how structural imbalances between expenditure and revenue continue to affect the economy, arguing that as it stands now, the Ghanaian economy is not resilient given it is failing to generate enough reserves.
He indicated that Ghana needs a cost-benefit analysis on the significant expenditures by the government citing areas like Free Senior High School.
He further remarked that “where the [Ghanaian] economy is now is not pretty” and the environment cannot be described as enabling. Going further. Mr Pianim also explained that some of the problems are attributed to external shocks.
He questioned the excessive focus of the government on the revenue side of the economic equation with the often touted mantra that Ghanaian citizens are not paying enough taxes. Instead, he argued that citizens pay different indirect taxes, especially value added tax (VAT).
Mr Pianim stressed that the main area of focus for policymakers should be the expenditure side and recommended that government should use quality predictive models and analysis in their economic decision-making.
He added that “we should not waste the [current] crisis” but instead use it to create a better and sustainable macroeconomic environment.
Meanwhile, the Vice President Dr Mahamudu Bawumia will be addressing key concerns raised by Ghanaians with regards to the economy today Thursday April 7.
An Economic Policy Analyst at the Office of the President, Dr Kabiru Mahama, also said Dr Bawumia will be answering the questions about the economy which were asked by Ghanaians today, Thursday April 7 during his address.
He said the Vice President will be touching on issues that affect the future of Ghana.
Speaking on the News @10 with Martin Asiedu-Dartey on Wednesday April 6, Dr Mahama said “He wants to address the questions of Ghanaians. He is going to speak to the concerns of Ghanaians about their lives and livelihood, about prices, about development. He is going to speak to Ghanaians about the future.”
By Laud Nartey|3news.com|Ghana