Seth Terkper Stresses Policy Continuity and Fiscal Discipline at Economic Dialogue
Presidential Advisor on the Economy, Seth Terkper, has underscored the importance of policy continuity and fiscal discipline in stabilizing the economy.
Speaking on the sidelines of the National Economic Dialogue (NED) in an interview on Channel 1’s Point of View, Mr. Terkper emphasized the need for a clear policy direction, particularly in tax administration and government resource allocation.
Mr. Terkper noted that while Ghana has established economic policies and standards, challenges remain in their implementation.
He pointed out that uncertainties in tax policies and inconsistencies in addressing fiscal concerns have affected economic stability.
“We have a policy consensus. We have our standards. Often, when we have this setting, tax issues emerge, and we do not appear clear on where we are,” he stated.
Reflecting on past fiscal challenges, he highlighted the impact of government defaults on economic stability, stressing that previous financial missteps “came home to bite.”
He drew parallels between the current economic challenges and those experienced in previous years, particularly in 2016 when government resources were stretched thin.
He further emphasized that the government’s approach to consolidating resources has been instrumental in improving liquidity.
“We started out with 16, we had the allocator, but we were not using it. It is crucial to begin tackling borrowing effectively,” he said, referencing past budget constraints and the need for prudent financial management.
Mr. Terkper also touched on tax revenue trends, noting a decline in tax collection rates from approximately 24% to 16% over time.
He described this as a significant concern, underscoring the importance of maintaining consistent tax policies to support economic growth.
Addressing the continuity of policy initiatives, Mr. Terkper remarked that many of the government’s current strategies are not entirely new but are built upon previous frameworks.
“What the president and the minister are talking about are not necessarily new initiatives; they are continuations of previous programs aimed at stabilizing the economy,” he explained.
He cited infrastructure projects as an example of policy continuity, highlighting that many contracts in key sectors such as energy and growth industries were awarded under past administrations.
“Why continue to award new contracts when there are existing projects in the pipeline?” he questioned, advocating for a more strategic approach to public investment.
On the broader economic outlook, Mr. Terkper acknowledged that while progress has been made, challenges remain. He emphasized that fiscal consolidation and sector-specific strategies will be critical in driving economic recovery.
He urged policymakers to focus on long-term structural solutions rather than short-term fixes.
The Economic Dialogue is expected to yield actionable recommendations that will inform government policies and strategies aimed at achieving long-term economic stability and growth.
