Dr. Theo Acheampong, a Political and Economic Risk Analyst, has cautioned that the country’s current state cannot support the pledges being made by the major political parties. According to him Ghana’s fiscal space is inadequate to meet the ambitious pledges.
Speaking during a programme broadcast by Multimedia Networks and monitored by The High Street Journal (THSJ), Dr. Acheampong explained that the manifesto promises from both the National Democratic Congress (NDC) and the New Patriotic Party (NPP) would place a significant burden on the country’s finances. He stressed that there is insufficient funding available to support many of these promises without resorting to borrowing from international capital markets.
“You realize that these manifesto promises would have a big impact on the fiscal space, and there is actually no money lying around to fund some of their promises without borrowing from the international capital market,” Dr. Acheampong stated.
He pointed out that in comparison to the 2020 general elections, the two major political parties have made even more promises this time around, with the NDC offering 620 and the NPP 380 pledges.
In 2016, similar promises were made by both parties. The NPP at the time said it knew how to mobilise funds to undertake the many promises it made. But it ended up piling up debts to unsustainable levels, leading to a downgrade of the country’s ratings to junk status and the eventual prolonged debt restructuring programme.
Dr. Acheampong criticized the manifestos of both parties for lacking the essential policies needed to drive growth and economic transformation. He highlighted the NDC’s pledge of free primary healthcare as a specific example, noting that it would cost $1.7 billion per year, amounting to $7 billion over four years.
He warned that the fulfillment of these pledges would likely impose additional burdens on Ghanaians, leaving any future government with no choice but to raise taxes or borrow more to meet these commitments.
Dr. Acheampong emphasized the importance of political parties providing clear benchmarks related to specific sectoral outcomes for assessment. He advised that parties need to carefully consider the financial implications of their proposed policy measures, as well as clearly outline how they plan to fund them.
Adding to the discussion, Prof. John Osae Kwapong, a Fellow at the Centre for Democratic Development (CDD), expressed concern that neither of the two major political parties has adequately accounted for the fiscal implications of their policies. He argued that political parties should be transparent with voters about the costs of their promises and the methods they intend to use to finance them.
Prof. Kwapong urged stakeholders in Ghana’s democratic process to compel political parties to provide detailed explanations of the funding mechanisms behind their pledges, ensuring voters are fully informed before making decisions.
