Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana Professor Peter Quartey, believes that the success of the government’s one million jobs initiative is largely dependent on the positive response from the private sector.
This initiative was officially announced by the Finance minister, Hon. Ken Ofori Atta, during the presentation of the 2021 mid-year budget review in Parliament on Thursday, July 29, 2021.
Hon. Ken Ofori-Atta said the initiative is a deliberate move by the government to ease the constraints of the private sector by expanding it to create more jobs for the youth.
However, Professor Peter Quartey speaking at the ISSER post-2021 midyear budget review conference, believed that the policy can only be feasible when the government works collectively with the private sector.
“The success of the initiative depends on the private sector. If the private sector responds positively then we are likely to generate more of it. But if it doesn’t, then we will have people on the payroll but might not be working and still be taking allowances”- he disclosed.
Speaking on Ghana’s public debt stock, Professor Peter Quartey stated that additional borrowing can be very problematic to the economy. Nonetheless, he added that it can be prudent only if the monies are invested into developmental projects.
“Additional borrowing might be problematic, so it’s important to generate the revenue from domestic sources. But then if the government is going to borrow from outside the country then that’s the area of concern. I’m not of the view that borrowing is a bad idea, but then the monies borrowed should be invested rather than consuming it” – he stated.
Ghana’s total public debt stock, as a percentage of GDP, increased from 76.1% at the end of December 2020 to 77.1% at the end of June 2021.