Ghana Should Implement a Debt Ceiling to Ensure Economic Stability

Dr. Priscilla Twumasi Baffour requests a debt ceiling in Ghana to prevent excessive government borrowing, which is crucial for economic stability. She stresses the need for tighter fiscal controls and the legal enforcement of fiscal responsibility to ensure accountability. Her comments come amid ongoing debt restructuring efforts, indicating a broader goal of restoring consumer confidence and fostering business growth.

Dr. Priscilla Twumasi Baffour from the University of Ghana Business School advocates for the establishment of a debt ceiling to mitigate excessive government borrowing in Ghana. She emphasizes that the nation’s economic stability is contingent upon stricter fiscal management. During an appearance on JoyNews’ Newsfile on March 15, 2025, she recognized signs of economic recovery, although noted they coincide with ongoing debt restructuring processes.

Highlighting the necessity of prudent debt management, Dr. Twumasi Baffour argued that maintaining macroeconomic stability is vital for nurturing business growth and enhancing consumer confidence. At the National Economic Dialogue, she supported the proposal for a debt ceiling that would restrict governmental borrowing to specified limits.

Dr. Twumasi Baffour elaborated on the significance of stable economic indicators in re-establishing public trust. She stated, “Macroeconomic stability is the foundation of everything.” For businesses to flourish and consumer confidence to rejuvenate, controlling inflation, stabilizing the currency, and lowering interest rates must be prioritized.

While she appreciated Finance Minister Dr. Cassiel Ato Forson’s plan to revisit the Fiscal Responsibility Act, she insisted that it is critical to transform fiscal responsibility into law, thereby restraining executive spending and bolstering accountability. She noted that while some aspects of her suggestions are reflected in the 2025 Budget, their successful implementation is paramount.

Dr. Twumasi Baffour acknowledged, “These are medium to long-term plans, and we cannot achieve everything within a year,” underscoring the importance of gradual progress in enhancing the nation’s fiscal frameworks and economic outlook.

In summary, Dr. Priscilla Twumasi Baffour calls for a debt ceiling in Ghana to ensure financial stability and prevent excessive borrowing, emphasizing the need for stronger legislative frameworks for fiscal responsibility. Her insights reflect the importance of sustainable economic practices in fostering business confidence and general economic recovery, as underscored by her remarks on recent governmental proposals and the 2025 Budget.

Original Source: www.graphic.com.gh