Government must maintain focus in managing economy

Economists will always argue that the best way for people to feel the progress made as far as the economy is concerned is when sectors are able to create jobs for the people. But for that to happen, there is the need for the government to ensure that macroeconomic fundamentals are right.

This is what governments have, over the years, struggled to do. For instance, the imbalances in the past led to the government seeking solace in the International Monetary Fund (IMF) by applying for a bailout in a move meant to ensure stability and restore investor confidence.

It is imperative to note that after a couple of years, the government, through its prudent management of the economy, is beginning to see some positive signs as far as the macroeconomic indicators are concerned.

For instance, the government is targeting to raise a total revenue of GHc51 billion, spend GHc62 billion and have a deficit of 4.5 per cent of Gross Domestic Product (GDP) by the close of the year among other laudable targets.

The move towards attaining these targets has received the thumbs-up from the IMF, which just finished its review of the economic performance of the government.

In a statement after the meetings, the team said efforts to ensure macroeconomic stabilisation were ongoing and on course; the government’s commitment to achieve end-year fiscal targets was encouraging, efforts at strengthening the resilience of the financial sector were positive, among other things.

The Daily Graphic expects these words of encouragement to boost the morale of the government and the economic management team, led by the Vice-President, in particular, to be able to complete the IMF programme on a high.

We have witnessed similar instances in the past when progress had been made in achieving positives for the economy, only for some reckless spending and corruption within the public sector to throw the gains made overboard.

On our side, we see the many efforts being made by the Finance Minister in particular to ensure that the cost of infrastructure projects in the country is not overly bloated to create holes in the country’s budget.

For instance, at the Value for Money Conference organised by the Vice-President’s Secretariat in Accra last Monday, Mr Ken Ofori-Atta categorically called for standardisation of the cost of public sector projects to curb corruption in their construction and ensure transparency and accountability.

He said delays and inefficient delivery of public infrastructural projects often destabilised the budget and resulted in the revaluation of inherited projects at the expense of the taxpayer.

These, among other observations, are apt and we trust that once the loopholes within the system are blocked, the government will be able to make more savings and channel the funds into improving the real sectors of the economy to create the needed jobs for the people.

It is the wish of the Daily Graphic that the government would stand firm and resist all temptations and keep doing what is right to restore the economy to its envisaged path.