Minority calls for balanced fiscal policies 

The New Patriotic Party (NPP) Minority Caucus on Tuesday disputed Dr. Cassiel Ato Forson, the Finance Minister’s claims about the economy’s performance. 

At a press conference in Parliament House, Accra, Dr. Gideon Boako, the NPP Member of Parliament (MP) for Tano North, argued that the previous government laid a solid foundation for the current government’s success. 

He disputed the Minister’s claim about the debt-to-GDP ratio reduction, pointing out that the previous government’s debt restructuring program and debt relief initiatives contributed significantly to the reduction. 

“The debt-to-GDP ratio can decrease due to GDP expansion, debt restructuring, or a combination of both,” he said. 

According to Dr. Boako, the rising prices of essential goods had led to a decline in the purchasing power of the Ghanaian cedi.  

He said: “The prices of goods like cement, deodorant, bread, and bottled water have increased significantly since January 2025. 

“The inflation rate has been declining, reaching 13.7 per cent in June 2025, but still affects the purchasing power of the cedi.” 

The Tano North legislator told the Parliamentary Press Corps that the government’s fiscal consolidation efforts had been focused on revenue generation through taxes, with several new taxes and increases in existing ones.  

“These tax measures have contributed to increased costs of living, with electricity inflation rising by over 130 per cent year-on-year,” he said.  

He further argued that the government’s approach should prioritize spending cuts and debt management rather than relying heavily on tax increases. 

He noted that the recent 30-40 per cent increase in fees and charges for public services was likely to have far-reaching implications for citizens and businesses. 

He added: “Some potential alternatives to achieve the same revenue generation goals without placing excessive burden on the populace could be expenditure rationalization, debt management, and institutional reforms.” 

Dr. Boako called for a balanced approach to fiscal consolidation that he considered both revenue generation and expenditure management crucial for achieving sustainable economic growth and reducing poverty in Ghana.  

He urged the government to engage in a thorough analysis of the potential impacts of its policies and consider alternative solutions that balance revenue generation with the need to protect vulnerable populations and promote economic growth. 

Source: GNA 

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