• Ashiagbor has charged government to maximise the country’s revenue potentials to close its fiscal gap

• He adds government must minimize its non-discretionary expenditure as well

•Ghana's debt-to-GDP ratio is currently pegged at 78% (including energy sector debt)

Vish Ashiagbor, a Country Senior Partner at the PricewaterhouseCoopers (PwC) Ghana has admonished the central government to ensure it is maximising the country’s revenue potentials and minimising its non-discretionary expenditure.

The move he believes must be implemented towards a long-term approach rather than a short-term one.

Making his submission during a preliminary session at the maiden edition of the Money Summit organised by the Business and Financial Times (B&FT) on May 25, 2021, in Accra, Vish Ashiagbor said the financial sector’s contribution to closing the fiscal gap is basically to partner government in the best way possible.

“This can be done by offering suggestions, solutions, and where possible work with actors in the real economy so that they can also contribute their part.”

Owing to the coronavirus pandemic's impact on the economy and rising government expenditure, Ashiagbor said he does not expect to witness a substantial reduction in the country's debt to Gross Domestic Product ratio.

The ratio which is currently pegged at 78 percent (including energy sector debt) is also projected to increase to 83.2 percent in 2022 – and then further to 84.8 percent in 2023, according to the International Monetary Fund.

This however leaves a huge fiscal deficit in the government’s revenue and growth targets.