The proposed financing model for the government’s 24-hour economy programme could come under pressure in 2027 if revenue targets are not met, the MP for Manso Nkwanta, Tweneboa Kodua Fokuo, has warned.
He said the government’s plan to create fiscal space for the programme depended heavily on revenue expected to be generated in the future, rather than funds already available.
That, he said, raised questions about the sustainability of the initiative, particularly with the economy projected to grow at a slower rate in 2027.
Speaking on the PM Express on Joy News on Tuesday, November 10, ahead of the presentation of the 2027 Budget by the Finance Minister, Dr Cassiel Ato Forson, Mr Fokuo said the government could struggle to finance the programme if revenue mobilisation fell short of expectations.
“It’s not as if we have the money at hand now. No, we don’t have the money now,” he said.
He explained that the financing arrangement appeared to rely on a proposed adjustment to the primary surplus target from 1.5 per cent to 0.5 per cent, creating room in the budget for spending on the programme.
However, he cautioned that the anticipated fiscal space was dependent on revenue that the government was yet to collect.
Mr Fokuo said the projected slowdown in economic growth from 6.2 per cent in 2026 to 4.9 per cent in 2027 could further complicate revenue mobilisation and place the programme’s funding under strain.
“If you look at revenue that has been generated this year, even when the economy is growing at 6.2 per cent, versus 2027 that we are projecting to slow down to 4.9, what it means is that we are likely to struggle in terms of revenue for 2027,” he said.
He consequently questioned where the resources to support the programme would come from if government revenue underperformed.
“If we do struggle for 2027, then you ask yourself where would the funding for the new economy really come from?” he asked.
Financing concerns
Mr Fokuo also questioned the earlier approach to financing the 24-hour economy, saying the private sector had failed to respond as expected because the programme was announced without adequate measures to manage the risks associated with participation.
He said the absence of a clear risk-management framework had weakened private-sector appetite for the initiative, leaving government to consider a financing arrangement that placed greater responsibility on the public purse.
“When the private sector did not jump on board as was expected, because it was just a slogan, it was just a pronouncement, but nothing was done to really manage the risks thereof, the private sector had no interest,” he said.
He described the current arrangement as a repackaging of the programme, with government funding expected to play a more prominent role.
The MP’s comments come as attention turns to the 2027 Budget, which is expected to provide further details on the government’s economic priorities, revenue projections and financing plans.
The budget will be closely watched for clarity on how the government intends to fund the 24-hour economy initiative, attract private investment and ensure that its commitments are supported by sustainable revenue sources.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Source link
