Lecturer at the University of Ghana Business School, Professor Lord Mensah has highlighted the issue of policy inconsistencies of the ruling New Patriotic Party (NPP) government, as the root cause of Ghana’s economic woes.
In an interview with Samuel Eshun on e.tv Ghana’s Fact Sheet programme, Professor Lord Mensah reiterated that the removal of road tolls was a policy decision that had a negative impact on the country’s finances.
He stated that the purpose of tolls was to generate revenue for the road fund, which in turn was used for road maintenance and other purposes.
However, with the introduction of the e-levy, which was supposed to cover road tolls, the government failed to maintain roads, leading to their deterioration and the eventual need for reconstruction. This, in turn, has resulted in a huge financial loss to the country.
“We might take things for granted and say when you dip your hands directly into the government coffers that is when you’re causing financial loss to the state. But then some decisions which create a cost indirectly to the country is also a way of causing financial loss to the state,” he told Samuel Eshun.
Professor Mensah emphasized that policy inconsistencies have serious consequences on the economy, as they create chaos and uncertainty, which make it difficult to raise funds to pay off debts.
He further stated that the failure of the government to pay matured bonds was a clear indication of the dire situation the country finds itself in.
“We shouldn’t take this for granted as it was removed and now being introduced so nothing is being lost. When you create chaos in your policy deliveries you end up messing up the economy and this is exactly what we find ourselves in now. The point where we cannot even raise money to pay out debts and as of last week bonds that were matured have not been paid. Are we going to continue having these inconsistencies in policies that will create more cost for us thereby building up into our public debt? “
The professor called on the government to address the policy inconsistencies and take steps to stabilize the economy. He also urged the government to be more transparent in its decision-making processes and involve stakeholders in policy formulation to ensure that policies are well thought out and properly implemented.
Meanwhile, after abolishing road tolls in November 2021 as part of what the Finance Minister says was an effort to reduce traffic flow and enhance productivity, the Finance Minister, Ken Ofori-Atta is back in Parliament with another proposal seeking to bring back the tax, this time at a slightly higher rate.
