Economists react to moves to withdraw subventions to State agencies

Business News of Thursday, 15 January 2015

Source: citifmonline.com

Dr Godfred Bokpin Lecturer

The Head of Finance Department of the University Of Ghana Business School Dr. Godfred Bokpin, is demanding a comprehensive plan to ensure the viability of government’s plan to withdraw subventions to some State agencies.

“I do not see anything wrong with taking off some of these institutions provided the right exit strategies have been put in place,” Dr. Godfred Bokpin said.

The Ministry of Finance and the Fair Wages and Salaries Commission are leading the implementation of plans to wean off eight subvented agencies to cut down on the wage bill.

According to reports, government is expected to save close to 25 million cedis when the policy is fully implemented.

Speaking to Citi Business News, Dr. Godfred Bokpin said the policy will only be successful if the capacities of the affected agencies are properly developed to withstand the shocks.

“Have these institutions themselves been given enough time to be able to adjust in terms of internal restructuring to improve efficiency and effectiveness and overall productivity”, he queried.

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