Ghana’s governing party’s 2024 flagbearer, Dr. Mahamudu Bawumia, is proposing a shift in government spending to empower the private sector as the engine of economic growth.
Focus on Private Enterprise
Dr. Bawumia, currently the Vice President, aims to leverage private businesses for economic development. He argues that excessive government borrowing to fund projects creates an unsustainable situation.
Concerns About Borrowing
As head of the Economic Management Team, Dr. Bawumia is concerned about the strain borrowing puts on the country’s finances and key economic indicators. He highlighted this concern during a meeting with labor union leaders in Accra.
Macro vs. Micro
Dr. Bawumia emphasizes the importance of addressing broad economic issues (macroeconomic) to prevent negative impacts on everyday living conditions (microeconomic). He believes a robust private sector will create a more resilient economy.
Reducing Government Burden
“Reducing the cost of living and creating fiscal space” are Dr. Bawumia’s key goals. He argues that a large government spending model burdens the country with increased taxes or borrowing.
Shifting Resources
Dr. Bawumia proposes to “realign government expenditure” and channel some resources towards empowering the private sector. He believes the country can achieve many goals without significantly increasing government spending.
Impact on Workers
High government spending often leads to increased taxes or borrowing, leaving less money for public services and worker benefits. Dr. Bawumia argues that a strong private sector can ultimately lead to better working conditions.
By prioritizing private sector growth, Dr. Bawumia hopes to create a more sustainable and prosperous future for Ghana.
