Dr. Priscilla Twumasi Baffour advocates for a debt ceiling in Ghana to prevent excessive government borrowing, emphasizing the importance of managing national debt for economic stability. She discusses the need for legally binding fiscal responsibility measures and underscores the importance of macroeconomic stability for business growth and consumer confidence.
Dr. Priscilla Twumasi Baffour, a lecturer at the University of Ghana Business School, advocates for the establishment of a debt ceiling in Ghana to mitigate excessive government borrowing. She emphasizes that the nation’s economic stability hinges on tighter fiscal controls. In her remarks on JoyNews’ Newsfile on March 15, 2025, she acknowledged signs of economic recovery but highlighted them against the challenging backdrop of debt restructuring.
Dr. Twumasi Baffour pointed out the critical need to manage Ghana’s debt prudently to uphold macroeconomic stability, which is vital for fostering business growth and enhancing consumer confidence. “At the National Economic Dialogue, one of the recommendations was the introduction of a debt ceiling, so that no government is allowed to borrow beyond a certain level,” she stated.
She underscored that stability in key economic indicators is essential to restoring public trust. “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,” she explained. This involves controlling inflation, stabilizing the currency, and lowering interest rates through appropriate measures.
Dr. Twumasi Baffour also praised Finance Minister Dr. Cassiel Ato Forson for his intent to review the Fiscal Responsibility Act, considering it a step toward improvement. However, she insisted that fiscal responsibility requires more than mere policy statements, advocating for the Fiscal Responsibility Committee to be legally binding rather than appointed at the behest of the presidency. “This will create real limits on executive spending and improve accountability,” she argued.
Although Dr. Twumasi Baffour acknowledged that certain proposals were included in the 2025 Budget, she cautioned that proper implementation is crucial for success. “These are medium to long-term plans, and we cannot achieve everything within a year,” she remarked. She noted that visible traces of their recommendations in the budget indicate meaningful dialogue.
In summary, Dr. Priscilla Twumasi Baffour has strongly advocated for the establishment of a debt ceiling in Ghana to prevent excessive borrowing and ensure economic stability. She emphasizes the importance of managing the national debt and promoting macroeconomic stability as foundational for business growth and consumer confidence. Her calls for legally binding measures to ensure fiscal responsibility highlight the need for accountability in government financial practices, while urging proper implementation of proposed strategies.
Original Source: www.graphic.com.gh
