A commitment from the government according to the Director of Operations at Delex Finance Mr Joe Jackson is required to restore some confidence in the economy.
“That government action required is a significant cut in expenditure in fact a huge cut in expenditure,” he explained on TV3 on Wednesday, October 19.
According to Joe Jackson, “this could be in areas of salaries and servicing of debts in the case of salaries you cannot cut but with servicing of debts that will materialize by domestic debt restructuring and that head cut we are talking about will send a strong signal to the market we are serious about confronting our problems”.
Mr Jackson expressed added that “once that is done government should look at its own size. Too many ministers, too many deputy ministers and government appointees we have to cut the size of government we have to cut expenditure and accept the pain of domestic debt restructuring; then the cedi will start to stabilize”.
He instated that “the best signal we can send is to take that pain look at Cote d’Ivoire when they were facing such a crisis. They cut government size from over 50 to 37 and that made the difference. We have too many ministers, I don’t think we need more than 35 ministers. When we put a credible debt-restructuring program in place the cedi will stabilize”.