A leading academic at the University of Ghana has cautioned the government against celebrating what he describes as a superficial display of fiscal discipline, warning that such rhetoric masks the country’s persistent and deep-rooted economic challenges.
Prof. Charles Godfred Ackah, a Professor of Finance and Economics, shared his concerns during an appearance on JoyNews’ PM Express Business Edition last Thursday. He expressed alarm over the government’s self-congratulatory stance on budget tightening and reduced public expenditure, arguing that this posture fails to reflect the urgent developmental needs of Ghanaians.
“Fiscal discipline is commendable if it involves reducing waste, tackling corruption, and improving spending efficiency. But if it simply means running a surplus in a developing country with vast unmet needs and idle resources, that’s not good policy,” Prof. Ackah said.
Tight Budgets, Broken Systems
The professor painted a grim picture of the country’s current realities: deteriorating roads, unemployed graduates, under-resourced hospitals, and a public sector grappling with unsustainable wages.
He questioned the wisdom in applauding reduced government spending when essential services remain in crisis.
“Go to the hospitals—there are no beds, and people are dying. Qualified graduates are sitting at home for years. Public workers are earning GH¢1,000 to GH¢1,200 amid rising inflation, food prices, and rent. So what exactly are we celebrating?” he asked.
Investing in the Future
Prof. Ackah argued that budget deficits should not be treated as inherently negative. Instead, their value lies in how the borrowed funds are used. He emphasized that developing countries like Ghana should prioritize productive investment—especially in infrastructure, education, and social services.
“If the deficit finances infrastructure, supports the private sector, or empowers households, then it’s not imprudent. That’s how you grow an economy.”
He further challenged the popular proverb “cut your coat according to your cloth”, often used to justify fiscal restraint.
“What does that mean in a country with glaring developmental gaps? We haven’t even addressed basic infrastructure. The issue isn’t whether we spend—it’s how we spend.”
Misplaced Priorities
According to Prof. Ackah, Ghana’s economic strategy must go beyond numbers and adopt a people-centered approach. He criticized the idea of austerity for its own sake and accused policymakers of celebrating “discipline” while ignoring the daily struggles of citizens.
“Even the world’s largest economies like the U.S., Singapore, and Malaysia run deficits. Why should Ghana, with all its challenges, take pride in under-spending?”
He stressed that government spending can drive growth if directed toward areas that yield long-term socioeconomic returns and stimulate private sector activity.
Reframing Discipline
Prof. Ackah concluded by calling for a more nuanced understanding of fiscal discipline—one that balances economic prudence with social responsibility.
“Discipline is meaningless if people are hungry, sick, unemployed, and hopeless. Let’s stop celebrating the absence of spending and start prioritizing smart investment.”
Source: Wesleyannews.com
Do you have a story to share? Send it to our editorial team at editor@wesleyannews.com
