An economist with the University of Ghana Business School (UGBS), Prof Godfred Bokpin, says the country has not institutionalised any kind of fiscal discipline since attaining independence.
He noted, among others, that there have not been sustainable techniques in eradicating wasteful spending and ensuring discipline in revenue generation and expenditure.
Considering the inefficiencies in public investment management processes, procurement infractions and others, Prof Bokpin said there is a need for policymakers to also look at expenditure efficiency.
“While we want to collect more revenue, we must also be looking at expenditure efficiency. I said something some time ago and it didn’t go down well with people.
“I was saying that a spoilt child does not need more money; that child needs more discipline – they must go together.”
“Ghana is a spoilt child in terms of our lack of fiscal discipline, inefficiencies in our public investment management process, procurement infractions,” he said at a Graphic Business/Stanbic Bank Breakfast Meeting on Wednesday, November 9.
He believes the country should be careful in generating more revenue when the same cannot be properly managed.
According to Prof Bokpin, the current economy is financially depressed, saying “there is no way the middle-income people and Ghanaians will be able to take advantage of the limited economic opportunity that is being created.”
He added, “While you advise the cat, you must also advise the stinking fish. That is why even though we are uncomfortable saying we should go to the IMF, we found ourselves in a situation where we felt that going to the fund would be more helpful. As a country since independence, we have not been able to institutionalise that kind of fiscal discipline on our own.”
A spoilt child, he noted, needs more discipline and not more money.
The Graphic Business/Stanbic Bank Breakfast Meeting was under the theme, ‘IMF: 17 times too many!’
