Bawumia touts economic resilience amid global economic headwinds
Vice President Dr. Mahamudu Bawumia has hailed the government’s resilient performance amid a challenging global economic backdrop, spotlighting its adept management in averting potential crises.
Speaking in Accra on Wednesday, February 7, 2024, Dr. Bawumia underscored the administration’s ability to navigate turbulent economic waters, urging Ghanaians to acknowledge the gravity of prevailing global challenges while recognizing the government’s proactive measures.
In his address, Dr. Bawumia emphasized the economy’s resilience across various metrics, including GDP growth, agricultural and industrial expansion, trade balance, gross international reserves, and job creation.
Despite inherited economic constraints and global adversities, he asserted that the government has made significant strides, underscoring its steadfastness in fostering economic stability.
“Clearly, notwithstanding the economic crisis, this government has been able to steer the ship of the nation away from catastrophe. In the face of the crisis, the overall performance of the economy in areas such as GDP Growth, agricultural growth, industrial growth, trade balance, gross international reserves and job creation demonstrated resilience.”
“Available data also shows that, notwithstanding the challenging economy we inherited, and the global economic crisis that ensued, the government has chalked a large number of achievements across the country. Due to time constraints,” he said.
Speaking further, Dr. Bawumia outlined a series of policy initiatives aimed at fortifying Ghana’s economy if elected as President in the forthcoming December elections. These strategies entail bolstering private sector engagement, enhancing fiscal and administrative decentralization, and optimizing institutional efficiency to curtail inefficiencies and minimize wastage.
Among the proposed measures, Dr. Bawumia highlighted plans to establish an independent fiscal responsibility council, tasked with mitigating budget deficits and interest rates under his stewardship. This move, he emphasized, would instill fiscal discipline and prudence, enshrining principles of accountability and transparency within the government’s financial architecture.
“To sustainably reduce the budget deficit and interest rates, my government will enhance fiscal discipline through an independent fiscal responsibility council enshrined in the Fiscal Responsibility Act, 2018 (Act 982).”
“The Fiscal Responsibility Act will also be amended to add a fiscal rule that requires that budgeted expenditure in any year does not exceed 105% of the previous year’s tax revenue. This will prevent the experience of budgetary expenditures based on optimistic revenue forecasts which don’t materialise,” he remarked.
Central to Dr. Bawumia’s vision is a concerted effort to alleviate fiscal burdens through strategic collaboration with the private sector. Leveraging successful initiatives such as Free SHS and Free TVET, his administration aims to incentivize private sector participation in infrastructure provision and service delivery, thereby reducing government expenditure and enhancing operational efficiency.
“With all these social safety nets in place, my government will now focus on jobs, and wealth creation by the private sector for all Ghanaians.
“My administration will incentivize the private sector to complement government in the provision of many infrastructure and other services to reduce government expenditure and improve maintenance,” he added.
In essence, Dr. Mahamudu Bawumia’s address epitomizes a commitment to sound governance, fiscal rectitude, and collaborative economic stewardship. By navigating the complex economic landscape with foresight and resolve, he envisions a Ghana characterized by sustainable growth, prosperity, and resilience in the face of global challenges.
