Terkper blames Ghana’s Economic Downturn to Government’s huge expenditure and low revenue generation

Finance and Economic management Expert, Seth Terkper, has attributed the current economic down turn in Ghana to the government’s huge expenditure and low revenue generation.

According to him, revenue and expenditure move hand-in-hand, as such, when you fail to generate enough revenue yet you balloon your expenditure, the economy will come crushing.

The Former Finance Minister made these remarks at an Economic Dialogue in Accra on Wednesday, organized  by the PFM Tax Africa Network.

“We are on slippery path because we are not generating revenue and cutting down expenditure,” Terkper emphasized.

Preferring solutions to Ghana’s economic woes, the Executive Director for PFM Tax Africa Network emphasized the need for the government to assign monies to the stabilization Fund as was experienced under the erstwhile John Mahama administration.

He explained that when prices of cocoa and other products go high and the country benefits from the increments of the products, there was the need to keep the benefits in the stabilization Fund so that “at any point that you are in trouble, you can fall on it”.

“Don’t chop all [the money]. Keep some in the stabilization fund,” he advised.

Investing in the stabilization Fund he said is the only way out to of Ghana’s economic independence maintaining that the continuous borrowing by the government only exacerbates the situation.

Source: newsflashafrica.com