Ghana cannot celebrate austerity amid huge infrastructure deficit – Bokpin

Ghana's Economics Professor Godfred Alufar Bokpin has cautioned that the country cannot celebrate austerity measures while grappling with a significant infrastructure deficit. During a recent appearance on Joy News’ PM Express, Bokpin acknowledged the government's achievements in stabilising the economy, but expressed concerns that heavy reliance on expenditure cuts would hinder benefits for ordinary Ghanaians.

He stated that a nation burdened by a substantial infrastructure deficit cannot reap the advantages of extensive austerity expenditure cuts. This warning comes ahead of Finance Minister Dr Cassiel Ato Forson's presentation of the 2027 Budget on November 12. The government plans to unveil a four-year New Economy programme, aimed at investing in productive sectors to transition Ghana from stabilisation to transformation.

The Opposition in Parliament has raised questions about the programme's financing, demanding an accounting of existing initiatives like the 24-Hour Economy before approving further commitments. Bokpin also pointed out that the 2026 Budget, like its predecessor, heavily relied on spending restraint to restore stability. He argued that such an approach reduces demand and brings down inflation without addressing the economy's limited production capacity.

The professor highlighted the disparity between the reduction in inflation and the daily struggles of commuters, emphasizing that better economic figures would offer little immediate comfort to those enduring long and difficult journeys. Despite his criticisms, Bokpin acknowledged the government's progress in achieving its initial stabilisation agenda, citing falling inflation, interest rates, and a resilient cedi.

He affirmed that the administration had set 2025 and 2026 as the years to restore stability, aligning with the IMF-supported programme. However, he maintained that the approach has taken time to reflect in the lives of Ghanaians.