Economist urges comprehensive review of public sector spending, revenue ceiling for fiscal prudence
Leslie Dwight Mensah, Economist and Research Fellow at the Institute for Fiscal Studies (IFS), has called for an exhaustive examination of public finance expenditures.
He underscored the necessity for a comprehensive review of public sector spending to enhance fiscal discipline.
Speaking at the inaugural Quarterly Economic Roundtable event organized by the Ministry of Finance and the University of Ghana on Tuesday, July 2, 2024, Mr Mensah emphasized that the government must scrutinize every expenditure item to ensure potential savings, proposing that the Government set a percentage ceiling on the revenue allocated to the public sector as a vital measure to manage public finances effectively.
“Examine every item that public finance is spent on and have a team to ensure we save money. A comprehensive review of the public sector expenditure is needed, Government must set a ceiling on how much it spends on public sector pay,” he quipped.
This recommendation dovetails with the government’s commitment to fiscal discipline and expenditure rationalisation, reiterated by Finance Minister Dr. Mohammed Amin Adam.
Dr. Amin Adam has highlighted ongoing efforts to eliminate unbudgeted expenditures, particularly in the crucial third and fourth quarters of this election year.
The Quarterly Economic Roundtable aims to bridge the gap between policymakers and academia, promoting research-driven and evidence-based policy formulation.
The inaugural event, themed “Restoring Macroeconomic Stability,” tackled critical issues such as fiscal, debt, and monetary policies. Esteemed panelists from the government, academia, and civil society led comprehensive discussions on these topics.
Panel discussions delved into the pivotal role of fiscal policy in achieving macroeconomic stability, the economic ramifications of debt management, and the central bank’s inflation-targeting regime, focusing on strategies to stabilise the cedi.
