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To achieve debt sustainability, the government is urged to prioritise value for money

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The government has been urged by experts to get the most out of the money it borrows to finance projects in order to ensure debt sustainability in the fiscal year 2023.

Additionally, they advised the government to set up a loan monitoring programme to keep an eye on the money being used to finance capital projects.

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The experts made the recommendation on Thursday in Accra during the Economic Sustainability Summit, which Media General, the African Centre for Energy Policy (ACEP), and IMANI Ghana jointly hosted.

The government must oversee the loans obtained, according to Mr. Benjamin Boakye, Executive Director of ACEP, in order to guarantee value for money when contracts are awarded.

We have the Audit Service completing their quarterly checks on particular projects, and they occasionally do so two or three years after the project has been done, but we don’t have someone monitoring how the borrowed funds are used,” he stated.

According to Mr. Boakye, the framework for contract awards makes it hard for the government to repay the loans it has contracted.

“Procurement is much to blame for our debts… We cannot pay our high-interest loans with this type of procurement because 85% of our contracts are issued through restricted bidding and direct negotiation,” he said.
In order to increase the effective use of taxpayer dollars in the public sector, Mr. Boakye encouraged the government to strengthen the procurement procedures.

He nevertheless attributed the burden on the public wage bill caused by the duplication of state organisations that served the same purposes as the cause of the nation’s debt problems.

In order to achieve debt sustainability, the government should pursue debt restructuring and fiscal and structural adjustment policies, according to Prof. Godfred Bokpin, a Senior Lecturer at the University of Ghana Business School.
In order to avoid a budget deficit, he added, the government must also make sure that its spending stays within its income.

 

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