The Finance Minister’s optimistic account of Ghana’s economic recovery has come under scrutiny from a leading voice within the Minority Caucus of the New Patriotic Party (NPP), who insists that the government’s tax-heavy strategy is undermining economic stability and hurting everyday Ghanaians.
Addressing the Parliamentary Press Corps on Tuesday, Dr. Gideon Boako, NPP Member of Parliament for Tano North, argued that Dr. Cassiel Ato Forson’s claims about a stable economy and declining inflation ignore the lived realities of Ghanaians grappling with rising prices, weakening purchasing power, and escalating public fees.
While acknowledging a decline in the inflation rate to 13.7% as of June 2025, Dr. Boako cautioned against celebrating too soon.
“Inflation may be trending downward, but prices of essential goods — from cement to deodorant and bread — continue to climb, eroding the cedi’s value and shrinking household budgets,” he said.
Dr. Boako was especially critical of the Finance Minister’s narrative on debt management. He said the reduction in the debt-to-GDP ratio was largely the result of debt restructuring and relief measures initiated under the previous administration, not prudent fiscal management by the current government.
“Let’s be clear — debt-to-GDP can fall not just by good governance, but through GDP growth and debt write-downs. The Minister should give credit where it’s due,” he said.
He expressed concern over the government’s over-reliance on taxes as a core fiscal tool, pointing to a surge in utility costs and a 30-40% rise in public service fees as evidence of growing pressure on Ghanaians.
“Electricity inflation has shot up over 130% year-on-year. We can’t tax our way to prosperity,” Dr. Boako warned.
Instead, he advocated for a more balanced approach to fiscal consolidation, one that includes spending cuts, better debt management, and institutional reforms.
“Revenue generation is important, but we must also look at how we spend. Smart expenditure control can yield results without burdening citizens,” he added.
Dr. Boako urged the government to conduct thorough impact assessments of its economic policies, especially those affecting vulnerable populations. He emphasized the need for inclusive growth policies that do not rely excessively on tax hikes to fix structural issues.
In making the case for fiscal prudence over taxation, the Tano North MP is setting the tone for what may become an intensifying internal and national debate over the best path to economic recovery and social equity.
