You cannot ask for external help and refuse to cut your expenditure – German Ambassador to government

German’s Ambassador to Ghana, Daniel Krull has called on the government of Ghana to consider a cut in its budget expenditure while it continues to seek debt relief from the country’s creditors.

Speaking at a press conference on Friday, February 24, 2023, the Ambassador noted that Ghana cannot be asking for external debt relief while refusing to cut its expenditure.

“Well, of course, it depends very much on what kind of expenditures you’re looking at … I’m convinced this is true, for if I look at the budget of the German Foreign Ministry of the German government, I’m convinced there are important tasks that can be cut without hurting the economic development.

“And I’m convinced without going into details this also is true for Ghana. There are certain expenditures that can be lowered substantially and make an important impact and it has to be part of the package.

“I mean, I cannot go out to the international community and say I need help, but I’m not willing to cut my own budget expenditures. I have to be careful not to cut the social expenditures that are destroying lives and families. I have to be very careful not to take measures that might negatively impact economic growth.

“But I’m convinced there are many expenditures that could be looked at very carefully and can be lowered substantially,” he said.

Comparing Ghana’s situation to some countries including Germany, Mr Krull further called for a reduction in the size of Ghana’s government.

“I only can compare and with other countries like my own and I can just come to the conclusion that the number is much higher than in my country. So that might bring me to the conclusion that maybe there’s room for improvement,” he said.

He added that “Ghana has a very dense layer of institutions and responsibilities all over the country.”

Ghana is currently seeking external debt relief from its creditors amidst the country’s current economic hardship.

The government of Ghana is calling for the support of some countries including Germany to persuade one of the country’s major creditor, China, for a debt relief.

With Ghana owing China some $1.7 billion, the government is hoping the debt relief would help the country meet conditions for an IMF bailout.