Vice President Dr. Mahamudu Bawumia has established the direct relationship between government expenditure and borrowing, indicating he is prepared to minimise the former to halt the appetite for borrowing.
According to the flag bearer of the ruling New Patriotic Party (NPP), he will cut government expenditure to avoid balance of payment deficits which always puts the state in a position to borrow to support its budget.
Speaking with the clergy in the Northern Region as part of his nationwide campaign tour, Dr. Bawumia noted that his intention is to cut state expenditure by 3 per cent to Gross Domestic Product (GDP) in order to subdue the incessant loans.
“I also believe that we need to reduce government expenditure. Government expenditure is high and it doesn’t have to be so,” he noted.
“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,” the Vice President assured.
Dr. Bawumia further reemphasised the need for the government to allow the private sector undertake certain things to reduce the expenditure the state incurs.
“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 said Thursday, May 16, 2024.
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