Economist Kicks Against No Fees Stress Policy, Says It’s “Unwarranted Expenditure” Amid Fiscal Crisis

Economist at the Pentecost University, Dr. Paul Appiah Konadu, has expressed his vehement disapproval of the government’s No Fee Stress Policy, describing it as unjustifiable use of public funds in the face of a deepening fiscal crisis.

Speaking in the context of the need for fiscal discipline and improved revenue mobilization ahead of the 2025 Mid-Year Budget Review, he bemoaned that Ghana’s ballooning arrears owed to contractors alone now exceed GH₵67 billion.

With this, he questioned the rationale behind subsidizing services for a saturated graduate market while the government struggles to meet other pressing critical financial obligations.

For him, the GH₵500 million annual cost of the No Fee Stress Policy is a glaring example of unproductive public expenditure.

Despite the call for fiscal prudence, he mounted a spirited defense for the need for the government to honor its debt obligations owed to contractors after the audit but insisting that some unwarranted expenditures like the No Fee Stress Policy should be avoided.  

“When you owe, you must pay. The arrears owed to contractors are in excess of 67 billion. I think we must look at paying. Recently, the minister announced that they are going to pay about 4 billion. That is quite insignificant, so we should look at the paying, but as we pay, especially beyond 2025, the IMF is going to be out of town,” he indicated.

He continued that, “it is on record that whenever IMF is in town, we are disciplined; whenever IMF exits town, then indiscipline resumes. We should continue to be disciplined and to make sure that we are avoiding unproductive expenditures, and I think we should cut expenditures like the No Fee Stress policy, which is costing us almost 500 million Ghana cedis.”

“Graduates are already in excess supply on the market, so why do you subsidize something in excess supply for a government that is stressed financially? We should cut such unproductive expenditures,” he further justified.

His remarks come at a time when the country remains under the watchful eye of the International Monetary Fund (IMF), which is expected to conclude its current program in 2026.

 Dr. Konadu warned against a return to fiscal indiscipline once the IMF exits, reminding policymakers of a recurring pattern of financial recklessness that tends to follow the Fund’s departure.

The No Fee Stress Policy was introduced by the current administration to eliminate the financial burden associated with students who gain admission to the university. Through this policy, the government pays the fees for all first-year students. The government describes this as a necessary social intervention.

But Dr. Konadu argues it has become a drain on public coffers, especially at a time when infrastructure debts remain unpaid, inflation is stubborn, and public sector wages are under pressure.

He called for a reorientation of fiscal priorities toward productive and growth-inducing spending, especially in infrastructure, agriculture, and value-added industry, rather than politically appealing but economically unsound freebies.

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