Professor Godfred Alufar Bokpin, an Economist, has urged the government to shift from aggressive expenditure cuts to job-led growth to sustain economic stability and promote inclusive development.
He said excessive spending cuts risked undermining economic growth without creating decent jobs or attracting the investment needed to drive inclusive development.
Speaking exclusively to the Ghana News Agency (GNA) in Accra, Prof Bokpin, of the University of Ghana Business School (UGBS), said the government had shifted from revenue-based to expenditure-based fiscal consolidation since 2025, helping to stabilise the economy.
He said Ghana had achieved debt sustainability almost three years ahead of the International Monetary Fund’s (IMF) 2028 programme target, supported by fiscal consolidation and the strengthening of the cedi.
Under the just-ended US$3 billion IMF loan-supported programme, Ghana was expected to bring its debt to sustainable levels by 2028. However, the country’s debt-to-Gross Domestic Product (GDP) ratio had declined from 61.8 per cent at the end of 2024 to 45 per cent by June 2026.
“What that means is that we’ve done a lot of expenditure compression and monetary tightening within that short space. If we continue this path of over-compression, we risk stabilising without growing inclusively,” he said.
Prof Bokpin supported the government’s fiscal discipline but said the strategy had been overstretched. He argued that a gradual easing of spending controls towards 2028 would help stimulate growth in productive sectors.
He said the effects of excessive expenditure cuts were already evident in the government’s difficulties in paying teachers, the freeze on recruitment in tertiary institutions, and trained doctors and nurses remaining unemployed.
“This is because revenue is small and government is trying to control expenditure,” he said, urging the Government to prioritise job creation in the 2027 Budget.
He recommended targeted investments in agriculture, agribusiness, agro-processing, rural and urban road infrastructure, education and health, alongside measures to encourage private-sector investment.
Prof Bokpin described the proposed US$10 billion New Economy programme, expected to be introduced in the 2027 Budget, as an opportunity to redirect investment towards productive sectors. He also called for a phased implementation of the 24-hour economy initiative.
On revenue mobilisation, he questioned whether the Ghana Revenue Authority’s (GRA) reported achievement of revenue targets reflected the country’s actual revenue needs, arguing that tax collection remained inadequate relative to the size of the economy.
“If GRA says they have exceeded their targets, how does that target meet our national aspiration? Have we collected enough taxes to build roads, hospitals, schools?” he asked.
“We are not setting challenging targets… You said the pass mark at 35, your child goes to school and scores 38 and you say your child has done well. That is what we are doing with GRA. GRA can collect revenue up to hundred per cent,” he said.
At the launch of the Institute of Statistical, Social and Economic Research’s (ISSER) 2025 State of the Ghanaian Economy Report in Accra on Tuesday, the Institute said fiscal consolidation had been driven largely by expenditure restraint rather than improved revenue mobilisation and public investment.
The report indicated that total grants and revenue amounted to 16.1 per cent of GDP, while capital expenditure declined from 2.5 per cent to 1.4 per cent of GDP, raising concerns about the level of public investment needed to support job creation.
Prof Robert Darko Osei, Director of ISSER, urged the government to translate the gains from fiscal consolidation into jobs by prioritising investment in manufacturing, agricultural productivity and private-sector financing.
Mr George Kweku Ricketts-Hagan, a member of Parliament’s Finance Committee, said Ghana, like other African countries, had undertaken difficult reforms to stabilise its economy.
In an interview with GNA on the sidelines of the recently concluded IMF/World Bank Group annual meetings in Bangkok, Thailand, the former Deputy Minister of Finance said the next phase should focus on directing expenditure towards sectors capable of creating jobs.
“We have stabilised the economy. The next phase is to grow the economy in a way that will create jobs. We have a youthful population – if you grow and you don’t create jobs, there could be a problem,” the MP for Cape Coast South said.