Our Biggest Mistake Was Spending Without Reforms: Kwaku Kwarteng Admits NPP Failures
Published on January 8, 2026 • 10:13 AM GMT
Introduction
In a candid and revealing interview on PleasureNews’ AM Show on Thursday, January 8, 2026, former Deputy Finance Minister and Member of Parliament for Obuasi West, Kwaku Kwarteng, delivered a striking admission about the New Patriotic Party’s (NPP) governance record. He acknowledged that the party’s biggest mistake during its executive tenure was excessive spending without implementing the necessary reforms to generate sustainable revenue.
This confession comes amid ongoing national debate over Ghana’s economic challenges, fiscal responsibility, and the path forward for sustainable development. Kwarteng’s remarks provide a rare glimpse into the internal reflections of former government officials and offer crucial lessons for future administrations.
Key Points
- Primary Failure: The NPP government spent beyond its means without implementing revenue-generating reforms.
- Economic Inheritance: The party inherited a fragile economy already under an IMF program in 2017.
- Historical Context: Kwarteng attributes Ghana’s financial crisis to decades of economic mismanagement, not just the COVID-19 pandemic.
- Comparative Analysis: He notes that countries with stronger economic fundamentals survived the pandemic better than Ghana.
- Current Warning: The former minister warns that the current government is repeating the same mistakes.
- Urgent Call to Action: He urges the government to draw a clear line and implement bold reforms for Ghana’s future prosperity.
- Specific Concerns: Kwarteng highlights wasteful expenditures, including excessive travel budgets, while basic bills remain unpaid.
Background
To fully understand the gravity of Kwarteng’s statements, it’s essential to examine the economic context in which the NPP government operated from 2017-2024.
The Economic Landscape in 2017
When the NPP took office in January 2017, they inherited an economy that was already struggling:
- Ghana was operating under an IMF Extended Credit Facility (ECF) program
- The country faced high fiscal deficits
- Public debt was rising rapidly
- The currency had experienced significant depreciation
- Foreign exchange reserves were depleted
NPP Government’s Economic Policies (2017-2024)
During their eight-year tenure, the NPP government implemented several ambitious programs:
- Free Senior High School (Free SHS) policy
- Ambitious infrastructure projects
- Expansion of social intervention programs
- Job creation initiatives
The COVID-19 Impact
The pandemic, which struck globally in 2020, presented an unprecedented challenge to economies worldwide. Ghana was no exception, facing:
- Disruption of global supply chains
- Decline in key export revenues
- Increased health expenditure
- Revenue shortfalls from lockdown measures
Analysis
Kwarteng’s admission reveals several critical insights into Ghana’s economic governance challenges.
The Spending Without Reform Dilemma
The core issue Kwarteng identifies is the fundamental disconnect between government spending and revenue generation. This represents a classic case of fiscal imbalance where expenditures consistently exceed income.
The Problem: Governments often face pressure to deliver immediate results and popular programs to satisfy voters and stakeholders. However, without corresponding revenue streams or efficiency improvements, such spending becomes unsustainable.
The Consequences:
- Accumulation of unsustainable debt levels
- Crowding out of productive private sector investment
- Increased vulnerability to external shocks
- Erosion of fiscal credibility
Historical Economic Mismanagement
Kwarteng’s assertion that Ghana’s problems stem from “decades of economic management misbehaviour” since independence points to a deeper systemic issue. This suggests that the current challenges are not merely the result of recent policy failures but represent long-standing structural weaknesses in the economy.
The IMF Program Context
The fact that Ghana was already under an IMF program when the NPP took office in 2017 is significant. IMF programs typically come with strict conditions requiring fiscal discipline and structural reforms. However, political pressures often make it difficult for governments to maintain such discipline, especially when seeking re-election.
Comparative Economic Performance
Kwarteng’s observation that some countries survived the COVID-19 pandemic better than others due to stronger economic fundamentals highlights the importance of building resilience during good times. Countries with:
- Stronger fiscal positions
- More diversified economies
- Better governance structures
- Reduced dependency on volatile commodity exports
…were better positioned to weather the economic storm.
The Current Government’s Path
Kwarteng’s warning that the current government is “walking the same path” suggests a concerning pattern of repeating past mistakes. His specific mention of excessive travel budgets while basic bills like electricity remain unpaid illustrates the disconnect between government priorities and fiscal reality.
Practical Advice
Based on Kwarteng’s insights and the broader economic context, here are practical recommendations for sustainable economic management:
For Policymakers
- Implement Revenue-Generating Reforms: Focus on reforms that expand the tax base, improve tax collection efficiency, and promote economic diversification.
- Expenditure Rationalization: Conduct comprehensive reviews of government spending to identify and eliminate wasteful expenditures.
- Investment in Productive Sectors: Prioritize spending on sectors that generate long-term economic returns, such as agriculture, manufacturing, and technology.
- Debt Management: Implement strict debt management policies that prioritize concessional financing and productive investments over consumption.
- Institutional Strengthening: Build strong, independent institutions that can enforce fiscal discipline regardless of political cycles.
For Citizens
- Fiscal Awareness: Educate yourself about government finances and participate in budgetary discussions.
- Accountability: Hold your representatives accountable for fiscal decisions and demand transparency in government spending.
- Productive Engagement: Focus on contributing to economic productivity rather than solely demanding government services.
- Long-term Thinking: Support policies that may require short-term sacrifices for long-term economic stability.
For Businesses
- Advocacy: Engage constructively with government on economic policies that promote business-friendly environments.
- Compliance: Ensure full compliance with tax and regulatory requirements to support revenue generation.
- Innovation: Invest in innovation and productivity improvements that can drive economic growth.
FAQ
Q: What specific reforms should Ghana implement?
A: Key reforms should include tax system modernization, public financial management improvements, debt management frameworks, economic diversification strategies, and strengthening of anti-corruption institutions.
Q: Is the Free SHS policy to blame for Ghana’s economic problems?
A: While the Free SHS policy represents a significant expenditure, the problem is not the policy itself but the lack of corresponding revenue streams to fund it sustainably. The issue is broader fiscal management rather than specific programs.
Q: How can Ghana reduce its dependence on borrowing?
A: Ghana can reduce borrowing dependence by improving domestic revenue mobilization, enhancing economic productivity, reducing wasteful expenditures, and attracting foreign direct investment through business-friendly policies.
Q: What role did the COVID-19 pandemic play in Ghana’s economic crisis?
A: While COVID-19 exacerbated existing vulnerabilities, Kwarteng correctly identifies that the underlying problems stem from long-term fiscal mismanagement. The pandemic exposed weaknesses rather than creating them.
Q: Can Ghana’s economy recover from its current challenges?
A: Yes, recovery is possible with consistent implementation of sound economic policies, political will for difficult reforms, and broad societal commitment to fiscal discipline.
Conclusion
Kwaku Kwarteng’s admission represents a significant moment in Ghana’s economic discourse. His candid acknowledgment of the NPP government’s failures provides valuable lessons for future administrations and highlights the urgent need for sustainable economic management.
The key takeaway is clear: Ghana cannot continue living beyond its means. The country needs bold leadership willing to implement difficult but necessary reforms that prioritize long-term economic stability over short-term political gains.
As Kwarteng aptly stated, “You cannot live your life on borrowed money and hope that somehow Ghana will become a developed country. That is a lie.”
The path forward requires honesty, courage, and a collective commitment to building an economy based on sound fundamentals rather than unsustainable borrowing. The time for decisive action is now.
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