The over spending on capital projects due to political promises without adequate domestic funding can partly be blamed for the current economic woes facing the country.

This is according to an economic outlook report by the Institute of Statistical Social and Economic Research (ISSER) for 2021 and 2022.

In an address to launch the report and a review of economic performance for the 3rd quarter of 2023, Director of ISSER, Professor Peter Quartey said the situation must change.

The economic performance report identified some loopholes in the country's economy which it said must be dealt with.

According to Professor Quartey, his outfit’s research reveals that the government over spent its budget prior to the last election in 2020.

He believes there will be a significant change if governments avoid over spending on capital projects during election periods.

"When you look at our expenditure during political periods, I think election can also be blamed to where we are at the current economic situation”.

“We over spent on so many projects, we cut sod for a lot of projects that we have to borrow to fund them. So at the end, we use three years to clear the mess. Every election year we enter into such situations then two years after election there's fiscal challenges”, he noted.

Meanwhile the institute has also advised President Akufo Addo to reduce the size of his government to boost confidence in the economy.

Professor Quartey believes that no investor will have faith in the government in its current form if the number of ministers and officials are not reduced.

"I can't put a number to how many ministers the government should have but the President must look at merging some of the ministries and get the work done. There shouldn't be a duplication in any role", he said.

Meanwhile, the institute has reiterated calls for a review of the Electronic Transaction Levy (E-Levy) downwards.