The economist Patrick Asuming believes the appointment of Mohammed Amin Adam as Minister for Finance ten months to the general election in December will not have any significant impact on Ghana’s economy.
Asuming, who was speaking on The Big Bulletin on Asaase 99.5 on 14 February, suggests that with the IMF programme and the predefined fiscal policy set out in the 2023 Budget, the new Finance Minister will have very little wiggle room to affect the national economy.
Tax burden
“I think given the timing of the reshuffle with barely a year to go and the main fiscal policy for the year set in the 2023 Budget, you’ll wonder whether he’ll have much time to make any significant changes. But, that said, there is still a mid-year review coming up and there could be some policy trades here,” Asuming said.
“Our fiscal policy broadly has been fixed for the next few years, but, having said that, there are still some opportunities to make some different choices even within those restrictions, because I think the direction of fiscal policy in the last few years in terms of the number of new taxes we’ve imposed is something that has raised concerns.
“I’m sure Ghanaians will be hoping that there will be a change in that direction,” Asuming said.
Limitations
Drawing attention to Dr Adam’s distinct background in economics with a specialisation in the energy and petroleum sectors, Asuming contrasted it with his predecessor’s focus on financial engineering and leveraging debt.
He expressed the hope that Dr Adam’s orientation will see him prioritise economic growth over debt accumulation.
However, he cautioned that implementing substantial changes will require time and echoed concern about the minister’s limited window for impactful reforms.
“Hopefully, that orientation will bring the change. But then again, it is going to take a long time for us to implement any substantial changes that will have a long-term impact on our debt situation.”
In addition, Asuming stressed the importance of consultation and consensus-building in shaping major fiscal policies.
He advocated that Adam engage with a broader spectrum of stakeholders, including business groups and non-governmental actors, to foster understanding and support for the government’s economic agenda.
“What I hope will happen is that probably he consults more and then forms a broader base for bringing consensus around some of the major fiscal policy choices that we have to make. But then again, you see that there is not much going to happen in the next few months or so,” Asuming said.
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