Let’s live within our means, pay off our debts – Ken Thompson counsels gov’t

Kenneth Thompson, the former Chief Executive of Dalex Finance, has urged the government to adopt a more sustainable approach to borrowing, emphasising the urgent need for the country to live within its means.

Speaking in an interview on Wednesday, November 20, Mr Thompson expressed concern about the rising national debt and the government’s continued borrowing.

Mr Thompson cautioned that borrowing for immediate consumption, such as purchasing luxury items like four-wheel drives, funding international trips, and covering operational costs like wages, is not a sustainable approach for the country.

He argued that borrowing should be reserved for long-term infrastructure projects that will benefit the nation’s future.

“We have to pay the debt, and we must live within our means,” Mr Thompson said. “We cannot spend what we don’t have.”

He emphasised that it is essential for the government to evaluate each borrowing decision carefully, ensuring that it will bring tangible benefits to the people of Ghana.

The finance expert also cautioned against using loans to fund consumption, advising that borrowing should be directed solely toward projects that will support long-term development.

“Do not borrow to fund consumption,” he reiterated, “Borrow only for infrastructure projects, and we must be committed to repaying our debt.”

Mr Thompson also drew a comparison between the economic challenges faced in the 1970s and the current situation, suggesting that times were tougher but people found ways to adapt.

He mentioned how industries such as tourism, which provided job opportunities for younger people, played a vital role in economic survival during more difficult periods.

Looking ahead, Mr Thompson called for the government to prioritise sustainable financial management, warning that failure to address the national debt responsibly could have serious long-term consequences.