Dr. Priscilla Twumasi Baffour urges the introduction of a debt ceiling in Ghana to curb excessive government borrowing and ensure economic stability. She highlights the need for careful debt management to sustain macroeconomic stability, necessary for business growth. Emphasizing accountability, she supports fiscal reforms and warns that success relies on effective implementation of budget proposals.
Dr. Priscilla Twumasi Baffour, of the University of Ghana Business School, has advocated for a debt ceiling in Ghana to limit excessive government borrowing. During a recent appearance on JoyNews’ Newsfile, she emphasized the need for tighter fiscal controls to ensure the country’s economic stability, especially amidst signs of recovery and ongoing debt restructuring.
She highlighted the necessity of careful debt management to maintain macroeconomic stability, which is vital for business growth and consumer confidence. Furthermore, during the National Economic Dialogue, it was recommended that a debt ceiling be implemented to restrict governmental borrowing beyond a specified amount.
Dr. Twumasi Baffour stated that for public trust to be restored, stability in key economic indicators is essential. She noted, “Macroeconomic stability is the foundation of everything. If businesses are to thrive and consumer confidence is to rise, people must retain value in their incomes,” stressing the need to control inflation, stabilize the currency, and lower interest rates.
She expressed support for Finance Minister Dr. Cassiel Ato Forson’s review of the Fiscal Responsibility Act, considering it a positive move. Nevertheless, she argued that fiscal responsibility should extend beyond mere policy announcements; “There should be legislation to make the Fiscal Responsibility Committee legally binding… This will create real limits on executive spending and improve accountability,” she asserted.
While acknowledging the inclusion of these proposals in the 2025 Budget, Dr. Twumasi Baffour warned that successful implementation is key. She remarked, “These are medium to long-term plans, and we cannot achieve everything within a year,” yet noted that the traces of recommendations in the budget indicate progress beyond superficial discussions.
Dr. Priscilla Twumasi Baffour’s call for a debt ceiling in Ghana underscores the importance of fiscal responsibility in safeguarding economic stability. Her emphasis on legislation to ensure accountability and the control of inflation, interest rates, and currency stability is crucial. While the recent budget reflects some proposals, the focus remains on proper implementation for long-term success.
Original Source: www.graphic.com.gh
