Mahama pledges fiscal discipline and local production to stabilize economy
John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), has vowed to instill fiscal discipline and prioritize local production to tackle exchange rate fluctuations if elected president.
In his maiden media encounter on Sunday night ahead of the 2024 General Election, Mahama emphasized the need for fiscal discipline to address economic challenges. “We would instill fiscal discipline because eventually, the main driver of the economy is fiscal discipline and fiscal consolidation. If you only want to ramp up revenues without cutting expenditures, you create a budget deficit that destabilizes the economy,” Mahama explained.
He highlighted the adverse effects of exchange rate instability on businesses and the cost of living in Ghana. “We had a budget deficit that went as high as 15% of GDP. Unless we instill fiscal discipline, our currency will continue to be under pressure,” he noted.
Former President Mahama, drawing on his experience as a former president, promised strategic policies aimed at resetting the country’s economy within four years. He acknowledged that complete transformation in such a short period might be challenging but assured that his government would focus on economic stability and reducing dependency on imports.
The NDC flagbearer proposed a 24-hour economy centered on boosting local production to meet domestic demand and leveraging the African Continental Free Trade Area Agreement for exports. “Companies participating in the 24-hour economy will receive tax incentives. We need to boost local production and create jobs for our youth. The government has obligations to make this work, and we will fulfill them,” he stated.
Mahama also committed to prudent management of state resources and the establishment of a special committee to audit government procurement above five million dollars. He pledged to allocate funds annually for completing abandoned projects before initiating new ones and to revamp the cocoa sector to enhance foreign exchange earnings.
Addressing Ghana’s ongoing programme with the International Monetary Fund, Mahama indicated he would not cancel it but would seek opportunities to modify the agreement to mitigate its impact on the populace. Additionally, he promised to abolish certain taxes he deemed burdensome, such as the COVID-19 Levy and E-Levy, and to explore other revenue-generating measures to support the economy. “We will streamline taxes and expand the tax net while rationalizing port levies,” Mahama concluded.
