The Impact of Ghana Government Poverty Alleviation Actions in the National Poverty Eradication Programme

Abstract

This paper highlighted on the impact of Ghana government policy development framework on the country’s poverty alleviation strategy and the weaknesses of the Medium-Term National Development Policy Framework Ghana Shared Growth and Development Agenda (GDAGS) II, 2014-2017. The study focused on empirical literature on the relationship between poverty alleviation and government budget deficit to map the analysis and the secondary data as graphs were collected through many sources as World Bank, Ghana National Bank and others to respond to the research questions. The findings showed that Government spending undermines economic growth by displacing private-sector activities. Whether financed by taxes or borrowing, government spending imposes heavy extraction and displacement costs on the productive sector. Academic research confirms that government spending harms economic growth. In one side, large government sectors reduce both the level of economic activities and the rate of poverty. Ghana government should significantly reduce its expenditure for the sake of the poverty rate. In other side, the government of Ghana should set down sophisticated financial institution development policy and regularization in their poverty alleviation strategy. A strong poverty alleviation strategy should include a sophisticated financial institution development policy and regularization to avoid a successive budget deficit.