An Economics lecturer at the Ghana Institute of Management and Public Administration (GIMPA), Dr. Theophilus Richardson has urged government to explore alternative ways to finance budget deficits rather than borrowing from outside.
Dr. Richardson stated that with the mounting pressure on the budget owing to accumulated arrears and the implementation of the Single Spine Salary Structure (SSSS), government can borrow from the public, increase taxes or invest in highly productive activities that will stimulate economic growth.
Dr. Richardson spoke to Adom Business News in reaction to statements by some economic experts that Ghana can suffer HIPC for a second term, if government does not properly manage its budget deficits.
The lecturer said it is not wrong for government to financing its deficit when available alternatives could be explored, instead of taking loans from outside which could create problems for the management of the economy.
“Government should seek internal solutions to settle and desist from taking loans externally to support budget despite pressure”, he emphasized.
Dr Richardson recalled that Ghana entered HIPC because she failed to properly manage her external debts.
He said external debts are different from government deficit saying the latter is a domestic problem which can be solved within the country without borrowing from outside.
According to him, the budget deficit can be better controlled to solve current economic challenges facing the government.
Story: Maame Esi Nyamekye Thompson/Adom News
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