IMF: UCC lecturer tasks government to cut expenditure

A professor of finance and entrepreneurship at the University of Cape Coast, Prof. Daniel Agyapong is calling on government to cut down on its expenditure to prevent a bailout from the International Monetary Fund (IMF).

He notes that government must cut down on its economic expenditure considering the current state of the Ghanaian economy and also curtail the sources of inflation in order to bring the economy back to normalcy.

Prof Agyapong’s call comes as the country is currently seeking a bailout from the International Monetary Fund as well as the World Bank’s 6th Ghana economic update which says Ghana’s macroeconomic outlook faces significant risks.

In his view, government needs measures such as manufacturing products locally and curtailing import expenditures to ease its economic burdens.

Speaking exclusively to ATLFM NEWS, he said “can we look at the various expenditures and really ask ourselves, whether these expenditures are productive and that it will be able to create additional value for the economy.

"We need to even look at the sectors where we are channeling certain funds because when IMF ask you that you need to tighten up and reveal your policies, in most instances, what they may want you to do is to introduce some additional taxes or increase certain taxes because that is the way you will also be able to mobilize more funding so that you reduce your reliance on even borrowing.”

To him, the government moving to the IMF could mean that government must make some dire decisions for the country.

“Is really very tricky but if we go, for instance, we know the previous time we went for this they asked us that we place a ban on employment, we may have to work out certain taxations through physical policies, ” he said

He however indicated with the current state of the economy, the government has no other choice than to go to the IMF.