The promise of free goodies has become a major campaign strategy by the two major political parties in Ghana in recent times.
The NPP has done their best to implement the Free SHS program and it has become a flagship achievement of the party.
The NDC on the other hand seems to be gradually buying into it by promising to absorb 50% of Tertiary education fees when voted into power and further extend the Free SHS to private schools. I wouldn’t have had a problem if the country had a very good economy and a high trade balance surplus, efficient and accountable revenue generation system.
Rather, our economy is saddled with debt. (we owed 236.1 billion as at March 2020). Companies like Tema Oil Refinery, Cocoa Processing Company , Bulk Oil Storage Company and many others mostly incur debt rather than make profit. Our revenue mobilisation leaves so much to be desired.
Free things are good , but when there’s no sustainable source of funding, then we should be worried.
However, these promises are mostly not done by the call of necessity but by the over ambitious decision by politicians just to win votes. In the last three years , the NPP has spent over $400 million on Free SHS. In as much as this may release some financial burden on parents, it puts much pressure on government’s finances.
One needs to understand that the world is ruled by causes -and- effects. Whatever we do may have an adverse effect on the economy tomorrow.
Looking at the 2020 manifestoes, it seems the NDC has bowed to the pressure of freebies and is going on a promise spree.
The promise of absorbing 50% of the tuition of tertiary institutions fees, paying footballers a minimum monthly allowance, free primary healthcare and myriad of promises to reduce taxes is beyond comprehension.
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To explain exactly what is happening in our country in real terms, we are simply doing things for the public just to win their votes and on the other hand piling up the public debt. The last time I checked ,we had mortgaged the GETfund proceeds for a loan of $1.5billion. Ghana’s road toll has also been mortgaged . Government intends to mortgage our Gold royalties for $500m. This shows exactly how our nation is performing.
When such projects and promises are made, we shouldn’t just look at the intention. We should look at the cost effect and ask for an invoice to know exactly the cost of the project and how it will benefit us in future.
Free things are not free. They’re things that we will pay for in the future anyway anyhow .
It makes it worse when the leaders of a country whose debt to GDP ratio is 63% make these promises without any reliable costing.
If goods and services are affordable, there wouldn’t be a need for free things that might shatter the opportunities of the younger generation financially.