By Jibril Abdul Mumuni, GNA
Accra, Nov. 11, GNA – Professor Godfred Alufar Bokpin, an economist and finance professor, has called on the Government to strike a balance between fiscal discipline and infrastructure investment as it pursues economic transformation under the 2027 Budget framework.
He said although Ghana’s recent expenditure-based fiscal consolidation had helped restore macroeconomic stability, excessive spending cuts could constrain economic growth and delay improvements in living conditions.
In an interview monitored by the Ghana News Agency (GNA), Prof. Bokpin said countries with significant infrastructure deficits could not rely solely on austerity measures to achieve sustainable development.
Prof. Bokpin explained that restricting government spending could help reduce inflation and stabilise the economy in the short term by curbing demand, but could also limit investments needed to expand productive capacity and improve public services.
He said many Ghanaians were yet to feel the full benefits of the country’s improving macroeconomic indicators because infrastructure and service delivery challenges remained widespread.
“Macroeconomic stability is important, but citizens must also see tangible improvements in their daily lives through better roads, transport systems and other productive investments,” he said.
Prof. Bokpin’s comments come as Dr Cassiel Ato Forson, the Minister of Finance, is expected to present the 2027 Budget and Economic Policy to Parliament on Thursday, and as the Government prepares to transition from economic stabilisation to a growth-focused agenda.
It is on the theme: “New Economy, New Ghana: Jobs and Prosperity.”
The 2027 Fiscal Strategy Document indicates that the Government intends to maintain fiscal discipline while creating additional fiscal space for strategic investments to support economic transformation and job creation.
The strategy targets annual economic growth of at least five per cent from 2027 to 2030 and proposes directing additional resources towards productive sectors through the New Economy programme, the 24-Hour Economy initiative and the Big Push infrastructure programme.
The document also indicates that the Government plans to reduce its primary surplus target from 1.5 per cent of Gross Domestic Product (GDP) to 0.5 per cent to create fiscal space for investment while preserving debt sustainability.
Under the medium-term expenditure framework, capital expenditure is projected at GH¢89.7 billion in 2027, rising to GH¢125.3 billion in 2028 and GH¢160.8 billion by 2030.
The fiscal strategy also allocates substantial resources to the Big Push infrastructure programme and the New Economy agenda, with investments aimed at boosting agriculture, industry, value addition, exports and private-sector job creation.
GNA
Edited by Agnes Boye-Doe
Reporter: Jibril Abdul Mumuni
Email: [email protected]