Dr. Priscilla Twumasi Baffour, from the University of Ghana, advocates for a debt ceiling to curtail government borrowing and ensure economic stability. She emphasizes managing debt carefully, supporting the review of the Fiscal Responsibility Act, and calls for a legally binding committee to enhance accountability. While recognizing progress in the 2025 Budget, she warns that effective implementation is essential.
Dr. Priscilla Twumasi Baffour, a lecturer at the University of Ghana Business School, advocates for the establishment of a debt ceiling to curb excessive government borrowing. Speaking during JoyNews’ Newsfile on March 15, 2025, she emphasized that Ghana’s economic stability hinges on stricter fiscal controls. While acknowledging signs of recovery, she noted this progress is occurring amid significant debt restructuring.
During her address, Dr. Twumasi Baffour underscored the necessity of carefully managing the debt burden to maintain macroeconomic stability, which is crucial for fostering business growth and enhancing consumer confidence. She highlighted the need for a debt ceiling recommended at the National Economic Dialogue, stating, “no government is allowed to borrow beyond a certain level.”
The economist stressed that stability in essential economic indicators is critical for regaining public trust. She articulated that, “Macroeconomic stability is the foundation of everything. If businesses are to thrive and consumer confidence is to rise, people must retain value in their incomes.”
Additionally, she welcomed Finance Minister Dr. Cassiel Ato Forson’s proposal to review the Fiscal Responsibility Act, deeming it a positive move. However, she asserted that fiscal responsibility must extend beyond mere policy from the government. Dr. Twumasi Baffour called for a legally binding Fiscal Responsibility Committee to impose actual limits on executive expenditures and enhance accountability.
While acknowledging the presence of some proposals in the 2025 Budget, she cautioned that achieving these goals would require time and effective implementation. “These are medium to long-term plans, and we cannot achieve everything within a year,” she remarked, signaling some optimism about the inclusion of her recommendations in the national budget without dismissing the challenges ahead.
In summary, Dr. Priscilla Twumasi Baffour’s call for a debt ceiling highlights the urgent need for fiscal restraint in Ghana to safeguard its economic future. As the nation recovers from previous financial instability, implementing such measures will be critical for securing macroeconomic stability and restoring public confidence. Her advocacy for a legally binding Fiscal Responsibility Committee further reinforces the necessity for accountability in government spending. With proper execution of the proposed strategies, Ghana could strengthen its economic framework significantly.
Original Source: www.graphic.com.gh
