The CEO of the Ghana Chamber of Commerce and Industry has called on government to exercise fiscal discipline, particularly in the lead-up to the 2024 elections.

Mark Badu-Aboagye says this is to avoid repeating the pattern of budget overruns that have historically placed the country in economic distress.

Speaking on Joy News’ PM Express Business Edition on Thursday, he highlighted the International Monetary Fund’s (IMF) concern over Ghana’s recurring budget overruns during election years, which often lead to deficits and inflation, burdening ordinary citizens.

“The highest risk identified by the IMF in their report is that every election year, we overrun our budget, creating a huge budget deficit. The issue is not just about the deficit, but how we finance it,” Badu-Aboagye said.

He expressed frustration at the government’s repeated overspending, which often leads to the printing of money, inflation, and increased hardship for the average Ghanaian.

Ghanaians suffering under inflation

Mr Badu-Aboagye emphasised the suffering caused by inflation, particularly for those on fixed incomes.

“When inflation goes up, it’s those on fixed incomes, like wage earners, who feel it the most. The money they have can no longer buy the same basket of goods and services,” he lamented.

He explained that while the government benefits from inflation by reducing the real value of its debt, ordinary citizens—especially low-income earners—bear the brunt of the economic pressure.

“Why are we suffering like this? We know the consequences of budget overruns and inflation, but we keep repeating these mistakes. People are struggling just to survive,” he added.

Mr Badu-Aboagye urged the government to adopt a more responsible approach to managing the economy.

He stressed that reckless spending during election years not only deepens Ghana’s financial crisis but also erodes the trust citizens have in the government.

A call for economic accountability

Referencing the impact of the government’s financial decisions on individual investors, Mr Badu-Aboagye recounted how many Ghanaians have lost their savings due to the government’s debt restructuring program.

“Can you imagine someone’s life savings, invested in a bond, with the belief that the government is risk-free, only for them to lose it all? People who have worked hard for their future now see their investments wiped out because of poor economic management,” he stated.

He criticised the financial strain that Ghanaians have been put under due to these fiscal policies and called for a “never again” approach from future economic managers.

“Whoever manages our economy next must not put Ghanaians through this kind of hardship again. We have suffered too much,” he stressed.

Badu-Aboagye also noted that the situation had worsened trust in the government.

“For the first time, people are looking at government bonds with a third eye. What used to be considered risk-free is now seen as risky, and that shouldn’t happen.”

Election Year Spending a Perennial Problem

Looking ahead to the 2024 elections, Badu-Aboagye expressed hope that the hardships Ghanaians have endured in recent years will serve as a lesson for future leaders.

“We are praying that, given where we have been, this serves as a strong message to whoever manages our economy next: Don’t put Ghanaians under this stress again,” he urged.

He reiterated the need for more stringent fiscal policies during election years to prevent the cycle of overspending, debt accumulation, and inflation.

“Why overrun your budget when you don’t know how you’re going to finance it? We need to stop this practice once and for all.”

Mr Badu-Aboagye concluded with a strong appeal for economic accountability.

“We need responsible leaders who understand that the decisions they make have real consequences for the lives of ordinary Ghanaians. People are dying, and it’s because of poor economic decisions,” he said.