Ghana cannot celebrate austerity amid infrastructure deficit, says Bokpin

Economics Professor Godfred Alufar Bokpin said on Tuesday that Ghana cannot celebrate extensive austerity expenditure cuts while a huge infrastructure deficit holds back growth and burdens citizens. Speaking on Joy News' PM Express, he acknowledged the government's progress in stabilising the economy but warned that its heavy reliance on spending cuts would delay benefits for ordinary Ghanaians.

Bokpin argued that the 2026 Budget, like its predecessor, relied on spending restraint that reduced demand without addressing the economy's limited production capacity. He cited a commuter spending nine to 12 hours travelling to Kumasi, saying an inflation rate of 5.2% means nothing to that person. He credited the government with falling inflation, lower interest rates and a relatively resilient cedi.

Finance Minister Dr Cassiel Ato Forson presents the 2027 Budget on Thursday, November 12. The government plans to unveil a four-year New Economy programme, and the Minority in Parliament has questioned how it will be financed and asked the government to account for existing flagship initiatives, including the 24-Hour Economy.

Why it mattersGhanaians, including commuters facing long journeys, will wait for stabilisation gains to reach their daily lives, while the Minority says the new New Economy programme's funding is unclear.

Sources