Economic advisor to President John Mahama and former Finance Minister, Seth Terkper, says the current administration is taking deliberate steps to rebuild long-term financial buffers to prevent a return to Ghana’s past economic challenges.
According to him, the government is actively replenishing the sinking and stabilisation funds to better prepare the economy for future shocks.
Speaking on JoyNews’ PM Express Business Edition, Mr Terkper said the move forms part of broader reforms aimed at ending the cycle of economic booms and busts that have hindered Ghana’s fiscal stability over the years. He quoted the Finance Minister, affirming, “We are populating the sinking fund. We are populating the stabilisation fund.”
Mr Terkper explained that these steps are driven by hard work, strategy, and lessons learned from previous financial setbacks. He pointed out that Ghana’s recovery from the HIPC programme and other economic difficulties to a period of stability represents a dramatic and positive change.
He noted that the country is slowly recovering from years of economic stress caused by factors such as heavy borrowing, rising compensation costs, and accumulation of arrears. He recalled the era of the single spine salary structure and the fiscal negotiations with labour, stressing how those times placed immense pressure on government spending.
During the interview, host George Wiafe suggested that things appear to be improving under the current economic management team, just five months into their tenure. Mr Terkper agreed but cautioned that success in the short term should not lead to complacency.
He referenced both the Finance Minister’s budget presentation and President Mahama’s recent speeches, which all pointed to a clear balance between addressing urgent needs and maintaining a long-term vision.
He reminded the public that history shows why caution is essential, even during periods of recovery. To ensure fiscal discipline, Mr Terkper revealed that new rules are being introduced, including debt ceilings, deficit floors, and other fiscal guardrails that will guide economic policy in the medium term.
While he acknowledged the visible signs of progress, Mr Terkper stressed that Ghana’s economic narrative must go beyond short-term achievements. In his view, the focus should be on building a strong, sustainable framework that ensures resilience and discipline in the years ahead. “That’s the only way,” he concluded.
