Gov’t cannot claim fiscal prudence by cancelling development projects — Gideon Boako

Dr Gideon Boako, the Tano North MP and Deputy Ranking Member of Parliament’s Finance Committee, has raised questions about the government's fiscal strategy. He argues that a reduction in public expenditure should not be deemed as fiscal discipline when it leads to the cancellation or postponement of development projects. While the government has highlighted improvements in its financial position, Dr Boako expresses concerns that these gains may be a result of inefficiently managing approved funds rather than implementing projects properly.

He referred to an International Monetary Fund report, stating that approximately 1,800 projects were cancelled and nearly 2,000 were rephased. These projects encompassed essential infrastructure like roads, drainage systems, schools, hospitals, and agricultural facilities, which directly impact communities and households. Dr Boako asks whether the government is genuinely becoming more efficient or merely failing to implement projects as planned.

He warns against prioritizing development expenditure reduction solely for the sake of favorable fiscal indicators. Comparing the current approach to a household postponing necessary repairs, Dr Boako suggests that while the budget may appear healthy, underlying issues persist. He emphasizes that genuine fiscal prudence requires a balance between controlling expenditure and investing in projects that foster economic growth and enhance living standards.

Dr Boako firmly states that fiscal discipline should not serve as an excuse for development paralysis.