Bokpin to Government: "We Need You to Spend to Stimulate Growth"

Economics Professor Godfred Alufar Bokpin has urged the government to shift from austerity to active spending, warning that expenditure cuts are delaying the benefits of economic stability and leaving Ghana's infrastructure deficit unaddressed.

Speaking on Joy News' PM Express on Tuesday, Bokpin acknowledged improvements in key economic indicators but argued that the government must now invest to remove barriers to growth.

"We need government to spend to stimulate growth," he said .

His call comes two days before Finance Minister Dr Cassiel Ato Forson presents the 2027 Budget on Thursday, November 12, under the theme "New Economy"—a four-year programme focused on investment in productive sectors .

Austerity's Trade-Off

Bokpin explained that the government's stabilisation strategy in both 2025 and 2026 relied heavily on spending cuts, which lowered inflation by shrinking aggregate demand rather than by expanding the economy's capacity to produce.

"You are shrinking aggregate demand as a way of also bringing inflation down, rather than expanding the economy's severe or restricted supply capacity," he said .

For a country with a substantial infrastructure deficit, he argued, that approach carries real costs.

"So, for a country that is saddled with a huge infrastructure deficit, imposing restrictions on the growth drivers of the economy, such a country cannot celebrate extensive austerity expenditure cuts," Bokpin said .

The Gap Between Statistics and Reality

Bokpin illustrated the disconnect between headline figures and daily life with a reference to the Accra-Kumasi road, where travellers routinely endure journeys of nine to 12 hours.

"If somebody is spending nine to 12 hours to travel from here to Kumasi, inflation of 5.2% means nothing to that person," he said .

He said the benefits of the current approach would take time to reach ordinary Ghanaians.

"It's simply because the approach we have adopted in restoring macroeconomic stability is going to take a while to reflect in the lives of Ghanaians" .

Credit for Stabilisation

Despite his criticisms, Bokpin credited the government with largely achieving its two-year stabilisation objective. He cited falling inflation and interest rates, alongside a cedi that has remained relatively resilient despite renewed pressure.

"I would say they've done quite well in restoring macroeconomic stability," he said .

He noted that the government's approach aligned with the IMF-supported programme, which concluded in July 2026, and that the proposed New Economy agenda reflects an intention to move from stabilisation toward transformation .

The Infrastructure Deficit in Numbers

Bokpin's concerns are supported by independent assessments. The Ghana Institution of Engineering's 2026 Infrastructure Report Card assigned Ghana an overall grade of D3 (57%), with the road sector recording the sharpest decline—dropping from D3 to E1 (50%)—and health and railway infrastructure also receiving failing grades .

A World Bank report estimated that Ghana requires approximately US$37.2 billion annually to bridge its infrastructure gap, a figure that exceeds current government capital expenditure by a ratio of nearly 40:1 .

The Financing Question

The Minority in Parliament, led by Dr Mohammed Amin Adam, has questioned how the New Economy programme will be funded, demanding accountability for existing initiatives—particularly the 24-Hour Economy—before new commitments are made. Amin Adam noted that only GH¢110 million was allocated to the 24-Hour Economy in the 2026 Budget against a projected US$4 billion investment target .

Finance Minister Forson has ruled out additional borrowing, saying the programme will be funded through 1.5% of GDP annually from domestic revenue and savings from fiscal consolidation, including reducing the primary surplus target from 1.5% to 0.5% of GDP. He projects total funding of at least US$13 billion over four years .

Bokpin's argument places him at the centre of that debate: the government must spend more to address the constraints holding back growth, but it must do so without reigniting the instability it spent two years suppressing. Whether Thursday's budget resolves that tension is the question that will define Ghana's next economic phase.

Key Points:

· Bokpin's call: Government must spend to stimulate growth rather than rely on austerity

· Stabilisation verdict: "Done quite well" in restoring macroeconomic stability

· Infrastructure reality: Road sector graded E1 (50%) by GhIE; US$37.2bn annual funding gap (World Bank)

· New Economy financing: Forson rules out new loans; targets US$13bn from domestic revenue and fiscal savings

· Budget presentation: Thursday, November 12, 2026, under theme "New Economy".