Dr. Priscilla Twumasi Baffour has called for a debt ceiling in Ghana to prevent excessive government borrowing, underscoring the need for tighter fiscal controls. She emphasizes the importance of macroeconomic stability for business growth and consumer confidence, commending efforts towards reforming the Fiscal Responsibility Act but insisting on legislative backing for accountability. Proper implementation is crucial for these initiatives to succeed in the long term.
Dr. Priscilla Twumasi Baffour, a lecturer at the University of Ghana Business School, has proposed the introduction of a debt ceiling in Ghana to mitigate excessive government borrowing. She emphasized that the nation’s economic stability is contingent upon establishing tighter fiscal controls.
During an appearance on JoyNews’ Newsfile on March 15, 2025, Dr. Twumasi Baffour recognized signs of economic recovery; however, she contrasted this with the backdrop of ongoing debt restructuring. According to her, meticulous management of Ghana’s debt is necessary to maintain macroeconomic stability, which is vital for fostering business growth and enhancing consumer confidence.
Dr. Twumasi Baffour pointed out that one pertinent recommendation from the National Economic Dialogue was for a debt ceiling to prevent government borrowing beyond a defined limit. She underscored the significance of stabilizing key economic indicators as crucial to restoring public trust in the economy.
Furthermore, she stated, “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.” This, she noted, necessitates controlling inflation, stabilizing the currency, and reducing interest rates through appropriate measures.
In addition, Dr. Twumasi Baffour commended Finance Minister Dr. Cassiel Ato Forson for announcing a review of the Fiscal Responsibility Act, considering it a positive development. However, she argued that fiscal responsibility should extend beyond mere policy declarations.
Instead, she proposed that legislation should render the Fiscal Responsibility Committee legally binding, thus creating tangible limits on government spending and enhancing accountability. While acknowledging that elements of these proposals are reflected in the 2025 Budget, she cautioned that the success of these initiatives relies on effective implementation.
She stated, “These are medium to long-term plans, and we cannot achieve everything within a year.” Nonetheless, she noted the presence of recommendations within the budget as indicative of genuine effort beyond mere discussion.
In conclusion, Dr. Priscilla Twumasi Baffour advocates for the establishment of a debt ceiling in Ghana to safeguard against excessive borrowing, which threatens economic stability. She highlights the necessity of fiscal controls, legislation for accountability, and careful management of debt to foster macroeconomic stability and restore public confidence. Successful implementation of these measures in Ghana’s budgeting process is crucial for long-term economic recovery and growth.
Original Source: www.graphic.com.gh
