KEY POINTS
- Fiscal discipline would not fix Ghana’s economic crisis.
- Infrastructure and jobs need urgent government spending.
- Budget surpluses do not mean progress without results.
A prominent economist is pushing back against the Ghanaian government’s claims of fiscal discipline, saying that budget cuts and restraint mean little in the face of mass unemployment, crumbling infrastructure, and underfunded public services.
Charles Godfred Ackah, a professor of finance and economics at the University of Ghana, says the country’s economic crisis demands strategic spending, not austerity. Speaking on JoyNews’ PM Express Business Edition, Ackah made a forceful case for rethinking the meaning of “discipline.”
Fiscal discipline won’t fix broken infrastructure
“Fiscal discipline is fine if it cuts corruption or waste,” he said. “But if you’re using it to justify not spending while the roads are bad, hospitals are failing, and graduates are jobless, that’s not discipline.”
Ackah criticized the government for celebrating budget surpluses while schools remain understaffed, hospitals lack basic supplies, and thousands of qualified graduates sit idle. He said development requires deliberate investment, even if that means running a budget deficit.
Ghana’s economic crisis needs real spending
“You have nurses at home, teachers without jobs, and no beds in hospitals,” Ackah said. “You want to solve that with discipline? What does that even mean?”
He cited global examples, like the U.S., Malaysia, and Singapore, that have built strong economies through consistent deficit financing. According to him, Ghana shouldn’t aim to mimic austerity models that don’t even exist in wealthier nations.
“Who is running a surplus? Not even America. So why is a poor country bragging about cuts when the real work hasn’t been done?” he asked.
Ackah called for targeted investments in infrastructure and human capital, noting that the private sector alone can’t fill the gap. Public spending, he stressed, can catalyze broader growth.
No justification for ignoring social spending
“If the borrowing is going into building roads, improving health care, or supporting the private sector to invest, then that’s not reckless. That’s what we should be doing,” he said.
He slammed the government’s approach as out of touch, pointing to salaries as low as ¢1,000 ($97) for university graduates, despite rising costs of food, housing, and transportation.
“You want discipline? People are dying because there are no hospital beds. That’s the crisis,” Ackah said. “There is no discipline in neglecting people’s lives.”
