President of the Affiliation of Ghana Industries (AGI) Dr. Humphrey Ayim-Darke is warning that the deliberate expenditure cuts by authorities might damage the financial system if not properly focused.
He has requested the Finance Minister, Dr. Ato Forson to be tactful with the deliberate aggressive expenditure cuts within the 2025 Finances, so as to not stifle development within the coming months.
Dr. Ayim-Darke disclosed this on PM EXPRESS BUSINESS EDITION on February 20, 2025 with host George Wiafe.
“Some financial theories have proven that spending extra might stimulate financial development, subsequently any deliberate cuts needs to be properly focused, to make sure that financial development doesn’t endure”, he mentioned.
He argued that in an financial system the place authorities must spend to stimulate consumption, any makes an attempt to chop expenditure can be met with scrutiny and issues attributable to its impression on productiveness and the personal sector.
“We’re nonetheless aware about the advantages of those cuts and its impression on checking the deficits” he noticed.
Background
President John Mahama at a gathering with the Tripartite Committee introduced a Minimal Wage on February 20, 2025, and directed the Finance Minister to embark on aggressive expenditure cuts within the 2025 Finances.
“Minimize as a lot as you may and even the Finances of workplace of presidency equipment shouldn’t be excused,” he directed.
President Mahama is of the view that, the chief arm of presidency needs to be seen to be taking the lead in rationalizing expenditure.
Non-public sector’s position
Dr. Ayim-Darke mentioned the expenditure cuts needs to be focused at areas that may see the personal sector come on board by means of Public Non-public Partnership to assist authorities, particularly on infrastructure tasks.
“We’re in some difficult occasions and authorities can not do every little thing, and that’s the reason the personal sector is required. The reducing of such expenditure must also be centered on areas that might see personal sector come on board to offer the required assist in areas that authorities is struggling”, he mentioned.
Reacting to President Mahama’s revelation that the financial system was mismanaged by the earlier administration, Dr. Ayim-Darke urged the president to take steps to punish individuals engaged in financial crimes.
Finances expectations
Dr. Ayim-Darke suggested the Finance Minister to provide you with measures that may assist manufacturing corporations and industries struggling to recuperate.
“We must always provide you with measures and insurance policies that assist industries to be aggressive in these difficult occasions. A whole lot of consideration should be used to assessment the tax burden on companies”.
He added that the 2025 Finances should provide you with programmes and insurance policies that might assist maintain the present stability of the Ghana cedi.
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