During The Investment Dialogue organized by Citi FM/Citi TV in collaboration with Tesah Capital, Dennis Nsafoah, an associate professor of economics at Niagara University, offered insights into Ghana's 2024 budget. He characterized the budget as a victory for the country's fiscal authorities, as reflected in its name “Nkunim Budget” given by the former Finance Minister, Ken Ofori-Atta. According to Professor Nsafoah, the budget outlines a path for fiscal authorities to return public debt to sustainable levels, marking a significant achievement.
However, Professor Nsafoah raised concerns about the economic burden imposed on Ghanaian households and businesses by the budget. He emphasized that while the budget may benefit fiscal authorities, it comes at a high cost to ordinary citizens and businesses in the country. The burden is particularly heavy due to measures such as debt monetization, which disproportionately impacts low-income groups through inflation.
In light of these challenges, Professor Nsafoah proposed the effective management of the country's debt levels to alleviate the burden on households and businesses. He highlighted the harmful effects of debt monetization and underscored the importance of implementing measures to mitigate its impact, especially on vulnerable segments of society.
Overall, Professor Nsafoah's assessment emphasizes the need for a balanced approach in economic policymaking that considers both the interests of fiscal authorities and the welfare of Ghanaian households and businesses. Finding solutions to manage debt levels effectively while minimizing adverse effects on citizens remains a critical priority for sustainable economic development in Ghana.
