Dr. Eric Bempong, a lecturer at KAAF University, has doubled down on his critique of Ghana’s fiscal priorities, arguing that longstanding student and healthcare worker allowances—coupled with politically motivated last-minute hiring—are deepening the country’s economic woes.
During a recent interview on Oyerepa TV/radio, he called for an urgent overhaul of policies he describes as relics of a bygone era.
“These allowances served a purpose when they were introduced, but Ghana’s economy is no longer in the same place,” Bempong stated, referencing initiatives like nursing trainee allowances reinstated in 2017 and periodic student stipends. “We’re now grappling with severe financial constraints. Continuing these payments without scrutiny risks cannibalizing funds for critical infrastructure, education, and healthcare.” His remarks come amid rising debt distress, with Ghana’s public debt hitting ₵658.6 billion ($55 billion) in 2024 and austerity measures sparking widespread discontent.
Bempong’s critique extends beyond allowances to a recurring pattern of rushed public sector recruitment by outgoing governments. “Why the sudden hiring spree when an administration is on its way out?” he questioned, alluding to recent pre-election hiring surges. “Is this genuine job creation or a bid to secure political loyalty?” Such practices, he argued, burden successive governments with bloated wage bills, diverting resources from development projects. Analysts note that personnel costs already consume over 40% of Ghana’s tax revenue, limiting fiscal flexibility.
The academic’s warnings resonate in a climate of heightened political friction. With the ruling New Patriotic Party (NPP) and opposition National Democratic Congress (NDC) frequently trading blame over unemployment and economic mismanagement, Bempong’s stance challenges both sides to prioritize long-term stability over short-term gains. He advocates redirecting funds toward sustainable job creation in sectors like agriculture, renewable energy, and tech—areas aligned with global trends but underfunded domestically.
Public reaction to his proposals remains divided. While some laud his push for fiscal realism, others, particularly students and healthcare workers, fear losing vital support nets. “Allowances are a lifeline for many trainees,” argued Kwame Asare, a nursing student in Kumasi. “Cutting them without alternatives will push more people into poverty.” Bempong acknowledges these concerns but insists subsidies should target only the most vulnerable. “Blanket allowances are inefficient. We need precision,” he countered.
Economists largely agree that Ghana’s allowance system requires reform. A 2023 World Bank report noted that poorly targeted social programs disproportionately benefit middle-income groups, leaving the poorest underserved. Meanwhile, political hiring sprees—common across administrations—have been linked to corruption, with reports of “ghost workers” and inflated contracts draining state coffers.
As Ghana navigates its $3 billion IMF bailout program, Bempong’s critique underscores a broader dilemma: balancing immediate social needs with structural reforms. For citizens, the stakes are personal. For policymakers, his message is clear—stop clinging to populist tactics and start building an economy resilient enough to survive electoral cycles.
