Vice President Dr. Mahamudu Bawumia has stated that the government’s spending and borrowing are linked. He is ready to reduce government spending to lessen the need for borrowing.
Dr. Bawumia, who is also the flag bearer of the ruling New Patriotic Party (NPP), plans to cut government spending to prevent deficits and the need for borrowing to support the state budget.
During a meeting with clergy in the Northern Region as part of his nationwide campaign tour, he highlighted his plan to reduce state spending by 3% of the Gross Domestic Product (GDP) to reduce the constant need for loans.
Dr. Bawumia stressed the importance of reducing government spending, saying that high government spending leads to increased borrowing and taxation.
He aims to reduce government spending by 3% of GDP, which amounts to about GHC30 million. He believes that by reducing government spending and encouraging the private sector to fill the gap, the issues of insufficient government funds for various expenses can be alleviated.
The Vice President also emphasized the role of the private sector in reducing state spending, suggesting that not all tasks should be the government’s responsibility.
He encouraged a reduction in government spending and an increase in private sector spending during his speech on Thursday, May 16, 2024.
