Economist advocates reduction of debt burden on local economy

Accra, Dec. 29, GNA - Professor Cletus Dordunoo, an Economic Consultant on Tuesday appealed to government to adopt a systematic approach and prudent efforts to reduce the debt burden on the economy to facilitate wealth creation. "We must hasten slowly though we want to reach greater heights by borrowing less," he said.

Prof Dordunoo was contributing to a symposium on "Macro-economic Stability and Accelerated Wealth Creation", as part of the Annual New Year School, being organized by the Institute of Adult education of the University of Ghana (UG), The one-week School being attended by some 200 participants comprising traditional rulers, professionals and representatives of civic organizations, is on the theme: "Wealth Creation for Accelerated National Development: Imperatives and Challenges".

Prof. Dordunoo expressed the need to broaden the tax net and reduce the tax burden to attract investments.

He said government should strengthen the tax system by paying attractive bonuses to the revenue collectors, who hit a prescribed target.

This, he said, would create incentive for the collectors to declare all that they collected.

Prof. Dordunoo lauded government's removal on subsidy on petroleum products, explaining that Ghana was likely to lose about 80 per cent of development projects through the subsidy.

Dr Mahamadu Bawumia, Head of the Monetary, Policy Analysis and Financial Stability Department of the Bank of Ghana, said macro economic stability was vital for economic growth and that could be achieved through liberal policies that strengthen science and technology. Dr Bawumia advocated the need for deliberate strategy to reduce dependency on donor resources.

"It is easier to accelerate when you are on your feet than when you are on your knees."

Dr Bawumia said if Ghana had maintained its five per cent growth rate since independence in 1957, the capita income would have been more than 3,000 dollars by now.

Prof Ernest Aryeetey, Director of the Institute of Statistical, Social and Economic Research of the University of Ghana, who chaired the function said the ability of Ghanaian experts to facilitate national development was being hampered by the parochial interests of some policy makers.