The Chief Executive Officer of the Ghana Association of Bankers, John Awuah, has called on the government to implement austerity measures that would reflect its appreciation that the country is facing a dire economic situation.

According to him, demands for the government to cut down on its expenditure through austerity measures such as halting frequent travels by top public officials, cuts in salaries, reducing the number of ministers, etc., are only meant to be symbolic actions and not to generate any more funds.

Speaking on JoyNews’ Newsfile Saturday, he explained that the funds that would be saved from those austerity measures would be very small to be used for anything significant, rather the act will assure Ghanaians that the government recognises the dire economic situation and is willing to do everything to alleviate their troubles.

He said, “When you’re in crisis the tone that you set is critical. When people talk about how much are we going to save if public officers and government functionaries are stopped from traveling, how much are we going to save? It is not the quantum of money, but it’s the tone that is set which is more important.

“If you set the right tone, then if tomorrow GUTA or UTAG or any of these Trade Unions is making demands, you can make reference to the sacrifices that the managers of the economy, have made themselves.

“So if you look at the quantum of savings, you will not take any action because there is no one single handle of cost element that is going to give you hundreds and hundreds of millions of cedis. It is little savings here, little savings there, altogether that will come to the level of savings or cost-cutting that you’re looking at.”

His comments are in relation to suggestions for cost-cutting proffered by groups and individuals to the government to help it save some funds to help alleviate the dire economic situation in the country.

For instance, the IEA among other suggestions called on the President to “restructure ministries and reduce the number from 30 to 20, reduce the number of Ministers from 86 to 56 (including 16 Regional Ministers), slash executive pay by 20% and enforce the announced 20% reduction of MDA’s budgets”.

The IEA also wants the government to reduce the 2022 fiscal deficit from 7.4% to 6.0% to boost the credibility of the budget and reduce concerns regarding both fiscal and debt sustainability.

Professor Peter Quartey of the Institute of Statistical, Social and Economic Research, University of Ghana, also suggested that “Some of the flagship programmes; perhaps it’s about time we review them. If government approaches Ghanaians and explains to them that look, we said we’re going to do this, Free SHS and other flagship programmes. But look times are difficult.

Not due to our own doing but also due to the global issues we are having, so let’s perhaps suspend part of it or revise downwards. I believe that Ghanaians will embrace this so that we can save some of these resources to tackle other areas that are more critical.”

According to Mr. Awuah, he fully supports these recommendations and hopes government would implement them.

He noted that the current disposition of the government does not reflect one which is cognizant of the dire economic crisis the country is in.

“I picked a phone and called a few friends over the last two-three weeks, people who work in the public sector. You call this man, I’m in Dubai Expo, you call that I’m in Dubai Expo. Our public disposition does not reflect our circumstances.

“It is more or less we are doing the things that we want to do when we’re in good times not recognizing the fact that the country is in serious crisis,” he said.