[ 2016-11-02 ]

Spread developments to avoid budget overruns – Economist
Government has been cautioned against embarking on
developmental projects only during election
years.

“It’s very important that the government
remains firm in its commitment and not to get
carried away by the pressure to spend. This
attitude of only seeing development in the year of
election is something that as a country we should
move away from,” Director of the Institute of
Statistical Social and Economic Research (ISSER),
Professor Felix Asante said.

Ghana, has consistently in every election year,
overspent its budget, leaving the country in
difficult economic times the subsequent year.

The country’s debt usually increases during
election years due to the commissioning of many
infrastructure projects as well as other
unbudgeted expenditure during the period.

There have been calls from the International
Monetary Fund (IMF) as well as some economists and
civil society organizations for government to stay
within its budget during this period.

President Mahama as well as Finance Minister, Seth
Terkper, have assured that government will not
incur a budget overrun in this year’s election.
Professor Asante who was speaking at the Graphic
Business breakfast meeting on Tuesday further said
government must move away from overspending this
year.

“If we are able to spread these developments
over the four years, we will avoid the case where
six months to elections we have a lot of
commissioning of infrastructure. Let’s also have
it in mind that when these commissioning take
place, they come along with a whole set of
payments.”

“Just imagine a school being commissioned; you
need teachers, and a whole lot of things and this
has implications for your personal emolument in
the following year so we need to find a way of
spreading development …I think that is one area
that is hurting the nation,” he queried.

This year’s breakfast series was on the theme,
“Election year budget deficit; implications for
macro-economic stability.”

Source - citibsinessnews.com

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