Ghana’s Economic Recovery Process Begins with Transparency

Tax expert and Senior Lecturer at the University of Ghana School of Law (UGSoL), Dr. Abdallah Ali-Nakyea, has urged the Government of Ghana to be transparent with the country’s economic recovery plan to set the pace for effective economic decision making.
According to Dr. Ali-Nakyea, having a clear understanding of the nation’s fiscal state as Ghanaians would ensure that the economic recovery efforts being championed by the government are inclusive and benefit all segments of the population.

“Ghana is currently facing a very difficult economic situation, and for a successful economic recovery plan to fully take shape, the government must be open about the country’s fiscal state to ensure a well-rounded economic recovery effort from the country’s entire population. Openly disclosing this information would lead to thought-leading discussions that would lead to sustainable economic solutions,” he said.

Addressing delegates at the 60th anniversary week celebration of the Annual Accountants Conference of the Institute of Chartered Accountants, Ghana at the at Eusbett Hotel in Sunyani, on Wednesday, 26th April, 2023, Dr. Ali-Nakyea noted that tackling the country’s economic woes have not seen much progress because political parties and the citizenry tend to politicise the issues.
He noted that the two main political parties (the ruling New Patriotic Party and the National Democratic congress) are guilty of this and the resultant effect is that very little light is thrown on the actual economic issues which has brought the country to its current economic state.

He said addressing the issues head-on would lead to a structured economy which would provide long-term solutions to Ghana’s economic challenges, which would in turn keep the country away from its cyclical approach to the International Monetary Fund (IMF) for support.

Dr. Ali-Nakyea recommended the urgent need for a broad-based national development plan to guide the country’s economic activities for every ruling government. This, he said, would help address the country’s debt sustainability, enhance revenue mobilisation and achieve fiscal consolidation.

“The way forward in terms of Ghana’s economic recovery is for government to implement policies that aim for the middle-ground where the levels of both unemployment and inflation are present, but within an acceptable range, domestically generate revenue for development projects without overburdening the taxpayer, blocking all loopholes in domestic revenue mobilisation, ensure the prudent management of public funds, and restructuring of debts to create space for priority spending, on food and fuel.

“This can be successfully achieved if the country urgently reinstates the Fiscal Responsibility Act, 2018 - which was suspended during the (COVID – 19) pandemic - with the 5% cap on fiscal deficits in any given year. The government must also publish an updated medium-term debt management plan that either caps or places a moratorium on the contraction of non-concessional loans for a while”.

He further urged government to fully implement any agreed structural reforms which aim to put the economy on a sound footing, saying, “this includes significant cuts in the largesse and waste in government and public service delivery”.

His presentation themed ‘Navigating the Global Economic Recovery: Ghana as a Test Case’, brought to bear the current state of Ghana’s economy, Ghana’s current economic recovery plans, the impact made by Ghana’s current economic recovery plans, and expert recommendations to address Ghana’s economic issues.