Dr. Priscilla Twumasi Baffour urges Ghana to implement a debt ceiling to prevent excessive borrowing and maintain economic stability. Addressing the need for fiscal discipline, she emphasizes managing the debt burden, controlling inflation, and ensuring consumer confidence. While welcoming recent governmental proposals, she insists on the necessity of legally binding measures for fiscal responsibility and effective implementation of budgetary plans, advocating for prudent long-term strategies.
Dr. Priscilla Twumasi Baffour, a lecturer at the University of Ghana Business School, has advocated for establishing a debt ceiling to curtail excessive government borrowing in Ghana. She asserts that the nation’s economic stability hinges on stricter fiscal discipline. During her appearance on JoyNews’ Newsfile on March 15, 2025, she acknowledged the ongoing signs of economic recovery, which she emphasized are occurring amid debt restructuring efforts.
Dr. Twumasi Baffour highlighted the necessity of meticulously managing Ghana’s debt to ensure macroeconomic stability. Such stability is vital for fostering business growth and enhancing consumer confidence. She noted that a key recommendation from the National Economic Dialogue was instituting a debt ceiling, limiting government borrowing to a specific level.
She further reinforced the significance of stability in economic indicators to rebuild public trust. “Macroeconomic stability is the foundation of everything,” she stated, stressing the need for controlled inflation, currency stability, and reduced interest rates. These factors are imperative for businesses to thrive and for consumer confidence to rebound.
Welcoming Finance Minister Dr. Cassiel Ato Forson’s proposal to review the Fiscal Responsibility Act, Dr. Twumasi Baffour described it as a positive development. Nonetheless, she emphasized that fiscal responsibility should extend beyond mere policy statements. “There should be legislation to make the Fiscal Responsibility Committee legally binding,” she advocated, as this would establish authentic restrictions on executive spending and enhance accountability.
While acknowledging that components of her proposals are reflected in the 2025 Budget, she emphasized the importance of effective implementation. Dr. Twumasi Baffour remarked on the medium to long-term nature of these plans, cautioning against expecting immediate results. “But at least, we can see traces of our recommendations in the budget, which shows that this was not just another talk shop,” she concluded.
In summary, Dr. Priscilla Twumasi Baffour has called for a debt ceiling to safeguard Ghana’s economic future and ensure fiscal responsibility. She stresses that sound macroeconomic management is critical for restoring public confidence and supporting business growth. While recent budget proposals show promise, the success of these initiatives will depend on effective implementation and the establishment of legally binding fiscal frameworks to regulate government spending.
Original Source: www.graphic.com.gh
