Head of Economics Department at the University of Ghana, Professor William Baah Boateng, has said the stimulus package being provided by the government to businesses following the COVID-19 should not be used to pay salaries.
He explained that since salaries do not yield any returns, the package should be reinvested in projects that will generate more income.
In its quest to support Ghana’s economy of the impact of coronavirus, Government has made available a stimulus package of a minimum of GHc 1 billion to households and businesses, particularly small and medium scale enterprises.
Specifically, an amount of GHS600million has been earmarked to support the SMEs in Ghana.
Speaking on Citi TV Wednesday April 22, Prof Baah Boateng spoke against the tendencies to pay salaries with the package.
“What do we do in this? That is where innovation comes in and I am very happy that my colleagues are mentioning innovation.
“They say necessity is the mother of invention and from government perspective it will not be the best to use the stimulus package just to buy goods and services to people to consume. That will not be the best.
“I am expecting the stimulus package to help businesses to start something so that those challenges that they are having wont bet back. I have a bit of a challenge if we want to use the stimulus to pay salaries. That salary will not get us any returns.”