The Vice President has promised to cut state expenditure to reduce excessive government borrowing, should he be given the nod at this year’s elections.
The flag bearer of the ruling New Patriotic Party (NPP) says the excessive expenditure by the state is the cause of the deficit in the State’s balance of payments which forces the government to always borrow to make up for the shortages.
Speaking with the clergy in the Northern region as part of his nationwide campaign tour Thursday, May 16, 2024, Dr. Mahamudu Bawumia reemphasised the need for the government to allow the private sector to undertake certain things to reduce the expenditure the state incurs.
“I also believe that we need to reduce government expenditure. Government expenditure is high and it doesn’t have to be so. It’s not everything that government should be trying to do. And I want us to reduce government expenditure and rather allow the private sector to increase their expenditure,” he explained.
The “Economic Wizkid” established the correlation between excessive government expenditure and borrowing, indicating how he intends cutting down on taking loans through the reduction of government spending.
“When government doesn’t spend as much, he doesn’t have to borrow as much and it doesn’t have to tax as much. So if you can reduce government expenditure and my goal within the first four years is to bring down government expenditure by 3% of GDP –that’s about GHC30million –now if we can bring down government expenditure that much, and then the private sector provides it, then all these problems of government not having enough money to pay for this or that would go away,” he assured.
