Don’t cut your way to growth, Bokpin warns Ghana: post-IMF austerity without revenue will kill the economy.
Godfred Bokpin, a Professor of Finance at the University of Ghana Business School, has warned that Ghana’s post-International Monetary Fund adjustment strategy should not be driven by expenditure cuts alone, as such action could jeopardise long-term fiscal stability and economic growth. “If fiscal consolidation is to be achieved mainly through expenditure cuts, it risks undermining infrastructure development, social programmes and the capacity of the state, and in the end, limiting economic activity and the tax base,” he said on GBC’s Talking Point. Prof. Bokpin urged a greater focus on domestic revenue mobilisation through improved tax administration, expansion of the tax net and reduction of reliance on volatile commodity revenues, arguing that this will create fiscal space for sustainable investment. His remarks come as Ghana prepares to exit its 17th IMF programme in 2026, after implementing reforms including debt restructuring and spending controls to restore macroeconomic stability.
