According to the former president, the cedi’s depreciation is a result of government’s prioritizing revenue increase over expenditure cuts.
The flagbearer of the National Democratic Congress, John Mahama, says the current rate of the depreciation of the cedi is as a result of the government’s misguided priorities.
On July 7, 2024, at the Kempinski Hotel Gold Coast City in Accra, the NDC flagbearer answered a question on the cedi’s depreciation during a media engagement. He emphasized that fiscal discipline is needed, noting that increasing revenue without cutting expenditures can lead to a large budget deficit, which can harm the economy.
His comment follows the local currency’s decline in value against foreign currencies, which has caused concerns for businesses in the country.
“We would instill fiscal discipline because eventually, the main driver of the economy is fiscal discipline and fiscal consolidation. And so if you only want to ramp up revenues, but you’re not willing to cut expenditures, then you have a situation where your budget deficit is out of kilter,” Mahama said.
He added that if the current situation is left unchecked, it will continue to put pressure on the currency.
“And as you know, we had a budget deficit that went as high as 15% of GDP. And unless we instill fiscal discipline, we’ll continue to have a situation where it puts pressure on our currency,” he said.
The media engagement forms part of his plans for the nation ahead of the December 7, 2024 elections.
