Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP) has vowed to place a cap on government spending, ensuring it remains below 105% of the previous year’s tax revenue.
This move is part of his broader economic strategy, aiming for fiscal responsibility and sustainability.
Addressing a gathering of supporters in his inaugural public address since assuming leadership of the NPP, the vice president emphasized the importance of prudent financial management to foster economic growth and stability.
“To sustainably reduce the budget deficit and interest rates, my government will enhance fiscal discipline through an independent fiscal responsibility council enshrined in the Fiscal Responsibility Act, 2018 (Act 982). This will prevent the experience of budgetary expenditures based on optimistic revenue forecasts which don’t materialize,” he stated.
The vice president also pledged to reduce the fiscal on government as president by leveraging the private sector.
“My administration will incentivize the private sector to complement government in the provision of many infrastructure and other services to reduce government expenditure and improve maintenance.115.The private sector will be encouraged to build roads, schools, hostels, and houses for government to rent or lease to own.
According to him, the demand for roads construction for instance is massive and this has historically placed a huge burden on the budget.
He therefore, believes that the private sector should finance the construction and maintenance of roads through PPP concession arrangements.
Also, his government, Bawumia said will move towards leasing rather than purchasing vehicles, printing equipment, etc.
“The private sector will have the responsibility for maintaining the equipment.With this approach, the budget can save very significant outright cash expenditure annually from various items across different Ministries, Departments and Agencies. This policy will energize the private sector and create many jobs,” he stated.
