Bawumia vows to Limit Government Spending to 105% of Prior Year’s Tax Revenue

Canada-Ghana Chamber of Commerce

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.

Leave a Reply