Audio By Carbonatix
A former Finance Minister in the erstwhile Kufuor administration, Dr. Anthony Osei Akoto has raised fears that Ghana's economy could return to its Highly Indebted Poor Country (HIPC) status if measures are not taken to reduce the overwhelming pressure on the budget.
Dr. Akoto stated that signs are already showing as a result of the debts piled up in areas such as the road and energy sectors.
Dr. Akoto further stated that the migration of public workers onto the single spine salary structure (SSSS) has put intense pressure on the economy leading to a sharp rise in inflation.
He explained that in view of the current agitation by teachers over their demand for a 43% pay rise, government may be compelled to borrow money from external sources to support its expenditure which will further deepen the economic woes of the country.
In an interview with Adom News, the Tafo Pankrono MP cautioned government to employ stringent measures to save the economy, in order not to pile up debts that could cripple the economy.
“There is so much debt in the system which continues to pile pressure on the budget. Government still has to pay arrears of teachers and other public servants, so then government has to see the red light and act fast,” he emphasized.
Dr. Osei Akoto’s position was corroborated by an independent Economic Analyst, Dr. Joe Abbey, acknowledging that the enormous pressure on government budget could throw the economy out of gear.
Dr. Abbey who is an Executive member of the Legon Centre for Policy Analysis suggested to government to strengthen the private sector in order to curb the situation.
He said when more of the human resources are absorbed in the private sector they would not necessarily rely on government pay roll which will relieve it of some pressure.
“Apart from government investing in the private sector excess expenditure must also be reduced so that the money saved can be invested into other areas,” he added.
Story by Maame Esi Nyamekye Thompson/Francis Hinakwah/Adom News
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
2026 U-20 WWC: ‘Not all wishes come true’ – Gyan inspires Black Princesses after elimination
2 minutes -
‘I am not a magician’ – Zdravko Logarušić on Nations FC exit from Africa
15 minutes -
Three nights. 28 titles. Ultimate history made
26 minutes -
Ghanaian delegates at IYF 2026 could become bridges for stronger Russia ties – John Aggrey
30 minutes -
Nigeria: Over 30 dead, 50 hospitalised after consuming alcoholic substance in Ondo State
32 minutes -
UK lawmakers demand new law to address AI threat to human rights
42 minutes -
WAFU B U-17 Girls Cup: Black Maidens depart Accra for tournament in Yamoussokro
42 minutes -
Sweden’s center-left bloc narrowly ahead as election remains too close to call
52 minutes -
GPL 2026/27: ‘We won ugly’ – Kotoko head coach unimpressed after Lions victory
55 minutes -
7 out of 10 human trafficking cases in Ghana never reach prosecution — JoyNews Research
1 hour -
Music, football to converge at Music Meets Football Summit 2026 in Lusaka
1 hour -
Putin invites young global leaders to partner with Russia in shaping future world order
1 hour -
Putin calls for ‘just world’, says every nation must be free to choose its own path
1 hour -
IFY 2026 food festival to serve 20,000 meals showcasing global cuisines in Russia
2 hours -
Ghana has a Domestic Violence Act: But can a victim afford to use it?
2 hours