Mr Alhassan Andani, an Economist, has backed calls for the government to allow parents to share the cost of fees under the implementation of the free Senior High School (free SHS) programme.
The cost-sharing of fees between parents and the government, he said, would help to reduce expenditure and lessen debt burden as Ghana implemented a loan-support programme to ensure debt sustainability and economic resilience.
When the Ghana News Agency asked about expenditure control measures in election year, the former Chief Executive Officer (CEO) of Stanbic Bank suggested that the government looked at education.
Mr Andani who has more than 20 years of banking experience, including credit management, said: “I will say that for parents who can pay, let them pay, and I must say that they’re eager to pay.”
He said this in an interview with the Ghana News Agency on the margins of the launch of the 10th anniversary of the Chartered Institute of Credit Management, Ghana (CICMG) and investiture of some Fellows into the Institute in Accra.
The International Monetary Fund (IMF) in its April 2024 fiscal monitor observed that deficits in election years tend to exceed forecasts by 0.4 percentage points of Gross Domestic Product (GDP), compared to non-election years.
The situation is no different from Ghana whose total expenditure, including arrears clearance and discrepancy for 2020 (an election year) amounted to GHS100.053 billion (26.1 per cent of GDP).
Expenditure stood at GHS80.706bn (18.4 per cent of GDP) in 2021, GHS109.421bn (18.5 per cent of GDP) in 2022, and GHS104.6bn (12.2 per cent of GDP) as of August 2023 – all of which were non-election years.
However, in 2024, which is another election year, the government is projecting a total expenditure (on commitment basis) to be GHS226.7bn, which is 21.6 per cent of GDP.
Mr Andani, who is an honourary Fellow of CICMG, cautioned against overspending, encouraging the government to share some of the expenditure items with Ghanaians where necessary.
He described the free SHS as a “fantastic” programme that would make every Ghanaian to go to school, and said, “the more those who can pay are taken out, the better we can look after those who need those opportunities”.
“We should prioritise to know who can pay for what and the subsidies the government can also give and pace our development, including road networks, and electricity generation,” he added.
Dr Anthony Aubynn, Chairman, CICMG, said it was important for the government to ensure that going forward, the country did not borrow more than it could repay.
That, he said, would help to lessen the adverse consequences that individuals and financial institutions faced during debt restructuring, including the reduction of the value of an asset [haircut] and postponement of due dates for repayment of bonds.
Regarding the contribution of credit managers in ensuring fiscal judiciousness, he encouraged the government to utilise the services of professionals as well as digital technology to reduce human interventions, while enhancing monitoring.
“We live in an era where technology is rapidly reshaping the way we conduct business, and it’s our collective responsibility to embrace these advancements and leverage them to foster inclusive and sustainable growth,” Dr Aubynn said.
