Ghana should cut the budget before seeking help -Ambassador

The German ambassador to Ghana, Daniel Krull has taken a heavy dig at the Akufo-Addo government for begging with one hand while increasing its budget with another.

Ghana is currently experiencing is worst economic downturn with the international market shut on the government. That means the government cannot get loans or bonds from the international market to finance its operations.

This has led to Ghana running to the International Monetary Fund for the 17th time since her first in 1966. The country has taken drastic measures to revive the economy including the implementation of the Domestic Debt Exchange Programme as the government is unable to pay its creditors.

An IMF deal for the country would only be possible after the country has been able to reach bilateral debt restructuring with its creditors. China is the largest creditor to the country but is unwilling to have discussions towards that.

Having earlier said the country risked missing out on the bailout if China does not support it, the German ambassador has now asked why the government is begging for support while maintaining a large budget.

Speaking on the size of government, Daniel Krull said as quoted by Joy News, “I only can compare and with other countries like my own and I can just come to the conclusion that the number is much higher than in my country”.

He added, “So that might bring me to the conclusion that maybe there’s room for improvement. Ghana has a very dense layer of institutions and responsibilities all over the country”.

According to him, the government can cut some expenses that would not hurt the economy but help in the rebuilding.

“Well, of course, it depends very much on what kind of expenditures you’re looking at … I’m convinced this is true for if I look at the budget of the German Foreign Ministry of the German government, I’m convinced there are important tasks that can be cut without hurting the economic development,” he explained.

“And I’m convinced without going into details this also is true for Ghana. There are certain expenditures that can be lowered substantially and make an important impact and it has to be part of the package,” he affirmed his believe that expenses can be cut.

Daniel Krull said he wondered how one can go to seek help from the international community yet feels very reluctant to implement measures at home that will help the situation.

“I mean, I cannot go out to the international community and say I need help, but I’m not willing to cut my own budget expenditures. I have to be careful not to cut the social expenditures that are destroying lives and families. I have to be very careful not to take measures that might negatively impact economic growth.

Confirming his thoughts, the German diplomat added, “…I’m convinced there are many expenditures that could be looked at very carefully and can be lowered substantially”.

The call by the German ambassador to the government to cut down its expenditure follows similar calls by Ghanaians. The Akufo-Addo government has had the largest set of ministers by any government in the country. This is seen as contrary to his campaign promise to protect the public purse which Ghanaians believe should include doing away with the ministries that could be merged.

Also, there are at least 1000 staffers at the presidency which has caused outrage among Ghanaians.