May 30, 2024

Head of Business Management Development at Kumasi Technical University and  political analyst, Dr. Solomon Kwarteng Forkuoh, has praised the efforts of the ruling New Patriotic Party (NPP) government to reform its spending practices in a bid to tackle the country’s persistent inflation.

Dr. Solomon Kwarteng Forkuoh, lauded the government’s initiative to cut down on unnecessary expenditures and instead focus on productive investments that can drive economic growth.

“This is not the first time we have gone to IMF for bailout, so you can see that the country has gained experience in dealing with IMF and therefore it will bad for the current government to repeat the mistake of previous government after seeking the IMF bailout.

“This current government has cut down unnecessary expenditures and its only spending on productive sectors. The government’s decision to be more prudent with its spending and channel resources towards productive activities is a commendable step in the right direction, this approach has the potential to help rein in inflation and put the economy on a more sustainable footing in the aftermath of the IMF bailout.” He said.

Dr. Solomon Kwarteng Forkuoh, further explained that, there are two main factors that affects the economy of every country, i.e. internal and external factors.

According to him, the NPP led government is doing marvelously well when it comes to the management of the internal factors since the government has control over it unlike the external factors.

“we have internal factors and external factors, the government has control of the internal factors which are the wise way of spending the country’s revenue which is something the NPP government is doing very well.

“However, the government has no control of the external factors and that is one factor that has been affecting the economy of the country and its clear that we don’t have a good shock absorber to deal with most of the external factors affecting our economy but this government is doing very good when it comes to the management of the internal factors.

Ghana secured a $3 billion bailout package from the International Monetary Fund last year to address its mounting debt crisis and economic challenges, including high inflation that has eroded the purchasing power of citizens.

Dr. Forkuoh, a respected expert in business management, believes the NPP government’s newfound fiscal discipline and emphasis on productive spending could be a key factor in stabilizing the economy and restoring confidence.