Professor John Gatsi
Professor John Gatsi

A Chartered Economist, Senior Lecturer and Head of Department of Finance at the School of Business Studies, University of Cape Coast, Dr. John Gatsi has indicated that, government is likely to face challenges in 2018 due to its inadequate efforts geared towards tackling the issues of revenue mobilization sources.

“2018 will be a difficult year for government in terms of revenue mobilisation but, I believe that government will also align its revenue mobilisation efforts by pruning down expenditure. The expenditure roadmap for this country is too bad. We need to realign expenditure and the way we are realigning expenditure is hurting the economy, arrears are not being paid. We are in a cycle of accumulation of arrears through the Free SHS, many people are now cooking and providing a lot of services” he noted.

Dr. Gatsi has expressed much worries about government’s high expenditure programmes, and further indicated that, the way at which government has designed its expenditure and revenue mobilisation targets, it may lead to the accumulation of non-payment of arrears. For instance, the current arrangement will result in arrears accumulation as being experienced with the Free SHS programme, where caterers and service providers haven’t been paid fully.

He made these disclosures after schooling Journalists for Business Advocacy (JBA) through the topic, ‘The Role of Journalists In Economic Reporting’ at a two-day training workshop organised by the JBA and financed by BoG and the Pan African Bank of Africa, Ecobank, at the Kofi Anan ICT Centre in Accra.

Meanwhile, the 2018 budget is slated to be read on next week Wednesday, november 15. He therefore called government to prioritise revenue mobilisation and realign its expenditure roadmap to make inflows.

“We need to enhance revenue mobilisation in 2018. If your revenue shortfalls are pronounce it has effect on debt management because you may be forced to fill the gap with more debts and at the same time you have repayment expectations of old debts, so all those things will be facing you in 2018. So that is why enhanced revenue mobilisation ought to be a priority,” Dr. Gatsi said.

Organized Labour has also called for the inclusion of practical policy initiatives in government’s upcoming 2018 budget to address the rising unemployment rate, and the gap has again increased over the last few months, due to the absence of efforts and feasible action plans to address the challenge.

The Organized labour is therefore with the opinion that, many workers are most likely be laid-off due to the non- performance of certain sectors of the economy, where textiles is not an exception.

The second and final day of the training, saw officials and technical people drawn from the BoG and Ecobank and notably, Madam Patricia Sappo from the Ecobank, who is also the President of the Chartered Institute of Bankers Ghana.

By:Sammy Adjei/Newsghana.com.gh

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