Government is committed to strict fiscal discipline – Mahama  

President John Dramani Mahama has assured banks and other financial institutions of the government’s commitment to adhering to strict fiscal discipline and prudence in managing the economy. 

The President gave the assurance during a dinner reception he hosted at the Presidency in Accra for Chief Executive Officers (CEOs) of banks and other financial institutions, who participated in the recently held Kwahu Business Forum. 

“We’re in an IMF (International Monetary Fund) programme, but we’re not going to be disciplined in our management of the economy only because we’re in an IMF Programme. 

Even when we exit next year, my hope is that we will implement the programme, so well that we don’t need an extension after April next year,” the President said. 

“But even after we emerge after April next year, I can assure you that we’re going to continue to be disciplined in our expenditure, to be disciplined in how (the) government manages the economy so that we create more space for the private sector to grow”. 

President Mahama said in the past, the previous government had crowded out the private sector when it comes to credit, because every credit available, the government was borrowing.  

He said somebody came complaining to him about why the Treasury Bill rate was coming down and that some people were expecting that they should get more money from their Treasury Bills. 

…the previous government had crowded out the private sector when it comes to credit, because every credit available, the government was borrowing. 

“And it’s that (the) government is just being more disciplined. We don’t need all that money. We’ll take just what we need. And if it comes down, it’s in the interest of all of us because it creates more room for the private sector to borrow,” he said. 

“We’ll lead by example, and we’ll be the first to sacrifice, because if you ask people to tighten their belts, you must be seen to be tightening your belt first. You don’t loosen your belt when you’re asking people to tighten their belt.” 

The President pledged that the government would manage the budgets and the economy properly.  

This, he said, was because the government also had a role to play.  

“You will struggle. And so (the) government also has a role to play to make sure that we create an environment that makes our businesses thrive. 

“And that is what has been behind everything that we have done since we took over office on January 7th this year.” 

Citing an example of a simple family management, the President said spending more than one’s income, husband and wife, were going to run their family into debt.  

We’ll lead by example, and we’ll be the first to sacrifice, because if you ask people to tighten their belts, you must be seen to be tightening your belt first. You don’t loosen your belt when you’re asking people to tighten their belt.

He said if one had an issue with income, then one must look at how one cuts the expenditure side. 

“You don’t buy a new car, buy new dresses for your wife, expensive shoes and bags when you know that your income is dwindling,” he said. 

President Mahama believed that the private sector was the engine of growth; saying “It’s a much-hackneyed phrase, and we politicians always repeat it, but we just pay lip service to it”.  

“If the private sector thrives, the economy thrives. If the private sector is happy, then the government is happy,” he said. 

“You’ve done your job because it’s the private sector that can absorb and employ the teeming youth that we are producing from all levels of educational structure.” 

He said the private sector, including the banks that give businesses capital and credits and that was why what happened in Kwahu was a beautiful thing; declaring that “and we intend to continue to support it and grow it”. 

The President assured the CEOs of banks and other financial institutions that the Ghana Revenue Authority (GRA) was their friend and that they would even be more friendly than before. 

He said the government would soon rationalize all value-added taxes and make them more transparent, fair, and even, so that everybody would be encouraged to pay them.  

On his part, Mr Julius Debrah, the Chief of Staff, said the Kwahu Business Forum was going to take a much larger form and that they were going to have about six exhibition halls where manufacturers of agro-processing products, banks, insurance companies and hospitality industry, and that there would also be conferences. 

He said next year’s programme would run for three days from the third to the fifth of April 2026, where people would have ample time to really sell their products. 

He announced that someone had donated 23 acres of land for the establishment of the Kwahu Convention Centre for the exhibition place of the Kwahu Business Forum in 2026. 

Mrs Elizabeth Ofosu-Adjare, the Ministry of Trade, Agribusiness and Industry, underscored the collective commitment of Government and financial institutions to building a stronger, more resilient and inclusive economy. 

Source: GNA 

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