Tano North lawmaker and Deputy Ranking Member on Parliament’s Finance Committee, Dr Gideon Boako, has questioned the Government’s fiscal strategy, arguing that reduced public expenditure should not be celebrated as fiscal discipline.
He says the reduction of public expenditure results in the cancellation or postponement of development projects, which is something that warrants no celebration.
Dr Boako said while government has highlighted improvements in its fiscal position, the reported underspending against amounts approved by Parliament raises concerns about whether the gains reflect greater efficiency or simply a failure to implement planned projects.
In an Economic Digest released this month, Dr. Boako cited an International Monetary Fund report which, according to him, indicates that about 1,800 ongoing projects have been cancelled and roughly 2,000 others rephased.
He said the affected projects included roads, drainage systems, schools, hospitals, teacher and health-worker accommodation, agricultural warehouses and electricity infrastructure, all of which have direct implications for communities and households.
“Is Government genuinely becoming more efficient, or are projects simply not being implemented as planned?” Dr Boako asked, arguing that the government should not sacrifice development expenditure merely to achieve favourable fiscal indicators.
He compared the approach to a household that improves its finances by postponing essential repairs and obligations.
“A family can appear financially healthy by postponing roof repairs, delaying children’s school needs or refusing to fix a leaking pipe. The monthly budget may look impressive, but the underlying problems continue to grow,” he said.
Dr Boako maintained that genuine fiscal prudence must strike a balance between controlling expenditure and investing in projects that expand economic opportunities and improve living standards.
“Fiscal discipline should never become an excuse for development paralysis,” he said.
Meanwhile, the Majority in Parliament has been arguing that the opposition New Patriotic Party are making a fuss over the Government’s fiscal discipline because they are used to reckless spending.
