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Opinion: The national budget and its implications for our economy and future

It is each generation's responsibility to leave a stronger nation to next generations. Our generation may be the first to leave a weakened country, saddled by debt and restricted economic options. We must buck the trend and maintain the Ghanaman dream for ourselves, our children, and future generations by reversing the trends that are pulling us in that direction.

The federal budget decisions we make today, as well as those we don't make, will have a huge impact on the economy, our own lives, and the lives of Ghanaians for many years to come.

Furthermore, federal spending, who is taxed at what levels, and the government's borrowing to cover the gap between spending and taxes all have an impact on the economy's growth. Healthy growth means a stronger, more successful country with more chances for you, your family, and your community, including more jobs, higher earnings, more money to save and invest, and improved government services. Growth is also necessary for Ghana to maintain its development us a country

Budget estimates for the federal government, on the other hand, are concerning for long-term economic growth. Debt is expected to expand faster than the economy, eventually reaching levels far higher than at any other time in our country's history. As a result, private savings that would otherwise be invested in enhancing worker productivity will be sucked up by government borrowing.

This process has a negative impact on the economy, resulting in decreasing salaries and living conditions. The government is expected to spend less on infrastructure, education, and fundamental research, all of which can help boost productivity and economic growth. Interest on the debt, Social Security, and health-care programs are crowding out such expenditure, which will all expand faster than the GDP under existing law.

Large, rising, and economically inefficient tax expenditures — provisions in the tax law that support certain activities over others while reducing government revenue — will prevent federal revenue from keeping up with increased spending. Policymakers must curb debt growth in order to assure a brighter economic future. They can prioritize spending programs that promote economic growth, improve the efficiency of other programs, and alter the tax law to produce adequate revenue efficiently. Changes like this can help to alleviate debt's economic impact.

By decreasing future payouts, raising taxes, or a combination of the two, there are a variety of options and policy levers that may set the program on a more sustainable path. Most bipartisan measures aim to strike a balance between preserving low-income retirees, preventing cuts for existing recipients, and ensuring a steady stream of retirement benefits for younger Ghanaians.

Such strategies have the potential to establish a system that is both sustainable and robust. This would encourage more entrepreneurship among the working-age population and give older Ghanaians peace of mind, knowing that Social Security will be there for their children and grandkids.

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