The government should allocate a portion of the second tranche of $600 million from the International Monetary Fund (IMF) to finalize abandoned road infrastructure projects.

This recommendation comes from Professor Peter Quartey, the Director of the Institute of Statistical Social and Economic Research (ISSER) at the University of Ghana.

According to him, addressing the country's infrastructure challenges and facilitating the transport of goods and services can be achieved by completing these projects.

Professor Quartey made these remarks during the ISSER’s review of the 2024 Budget Statement and Economic Policy in Accra, conducted by an 11-member team of academics from the institute, with support from adb and Stanbic Bank.

The team includes Prof. Peter Quartey, Professor Isaac Osei-Akoto, Professor Augustine Fosu, Prof. Charles Ackah, Professor Festus Ebo Turkson, Dr Ama Fenny, Dr Andrew Agyei-Holmes, Dr Richmond Atta-Ankomah, Dr Ralph Armah, Dr Naa Ama-Asante-Poku, and Dr Gloria Afful-Mensah.

Prof. Quartey emphasized that leaving the abandoned road infrastructure projects incomplete would incur higher costs.

“Road is very significant as it goes to key and production areas. So once the roads are good, you are connected and would enhance production and distribution and reduce the amount of time people spend in traffic,” he stated, as some of the economic benefits of improved road network.

According to Prof. Quartey, poor road infrastructure increased fuel consumption, caused traffic jams, pollution, and productivity delays, all of which had a significant financial cost.

Turning his focus on the budget, he said the 2024 budget was “modest since the government was making efforts not to overspend in 2024.”

He argued that the IMF program alone wouldn't solve the country's economic challenges, emphasizing the need for prudent spending and effective revenue mobilization.

Among several recommendations, the ISSER Director urged the government to implement measures to increase tax revenue for budget financing and development projects. Proposals included revising property rates and expanding the tax net to include informal sector workers.

With the government targeting about GH¢176.4 billion in revenue next year and planning to spend GH¢226.7 billion, much of it from domestic sources, Professor Quartey expressed concern about the government's heavy reliance on Treasury Bills and Bonds. He warned that this approach could negatively impact the economy and crowd out the private sector.

Prof. Quartey suggested reintroducing road tolls to generate revenue for improving road infrastructure.

He also advocated for increased financial investment in the real sector, particularly agriculture, services, and industry, to create jobs and stimulate economic growth.

Highlighting the need for better implementation of the Planting for Food and Jobs 2.0 initiative, he recommended government support for the production of cereals, grains, and meat to reduce reliance on imports.

Additionally, Prof. Quartey proposed a review of the free Senior High School policy for more effective implementation.

He also called for alternative funding sources for the National Health Insurance Scheme, suggesting the creation of an Endowment Fund and private sector involvement in raising financial resources for the scheme.