[ 2016-07-29 ]

Dr. Anthony Akoto Osei

Mahama can’t save Ghana with ‘extra time’ budget – NPP MPs
The Minority New Patriotic Party (NPP) Caucus in
Parliament says the supplementary budget estimates
presented to Parliament by the Finance Minister,
Seth Terkper on behalf of President John Mahama
cannot save the Ghanaian economy from the
challenges it is facing.

Minority Spokesperson on Finance and MP for Old
Tafo, Dr. Anthony Akoto Osei, addressing
journalists in Accra on Thursday said the
supplementary budget estimates is seeking to cut
down cost on all social services like the NHIS,
School Feeding, Youth Employment Agency (YEA),
free maternal care among others.

The situation, coupled with the IMF condition for
Parliament to pass the revised Bank of Ghana Act,
will not augur well for the country, stressing
that it has the tendency to further derail the
gains made by the country.

“The statement of the Minister of Finance only
confirmed that this John Mahama led NDC government
does not have an appreciation of the reality of
the economic challenges faced by most
Ghanaians”, he noted.

He added “The record after the eight budgets of
the NDC is definitely not one of a “Better
Ghana” than the one this government inherited in
2009. Rather, it is a record of a monumental waste
of an historic opportunity to transform the
economy of Ghana and improve the lives of
Ghanaians. The supplementary budget, just like all
other NDC budgets since 2009, will end up on big
promises and short on delivery”.

On Monday, July 24, 2016, Mr. Terkper walked to
Parliament and requested the legislature to
approve GH?1,888,203,387 as supplementary
estimates for the 2016 financial year.

The House had earlier approved a budget estimate
of over GH?50,000,000,000 to be spent on the
Ghanaian economy for the 2016 financial year.

Terkper’s request was spurred by recent
developments in both domestic and global markets.

He further told Parliament that Ghana’s ailing
economy has turnaround with the prospects looking
very bright despite the few lingering challenges.

The success, he noted was a result of the
country’s “Home Grown” policies which were
designed to achieve fiscal consolidation; address
short-term vulnerabilities; reduce a high budget
deficit that had become harmful to the private
sector; as well as stabilize and reverse the rise
in public debt.

“Mr. Speaker, we are on course to achieving
these goals through management of prudent fiscal,
financial, sectoral and monetary policies”, he
noted.

For instance, he said fiscal data up to
end-December 2015 show that total revenue and
grants were higher than the budget targets by 5%.

The overrun in total expenditure including
arrears, he added, narrowed to 2.1% above target.

“These performances resulted in a cash budget
of 6.3% of GDP, much better than the budget target
of 7.3% and 10.2% in 2014. Indeed, at 0.2% of GDP
at the end of 2015, the primary budget balance
that shows our ability to service loans for
development was a surplus for the first time in
over a decade. GDP also grew by 3.9% at end-2015,
better than the projected 3.5%”, he said.

He added “It is getting better with the economy
growing by 4.9% in the first quarter of 2016,
compared to 4.5% for the same period in 2015. In
spite of unanticipated shortfalls in price and
production of crude oil, GDP growth is projected
to end the year at 4.1% or better”.

Terkper made these observations when delivering a
statement on the review of the budget and economic
policy statement of the government and
supplementary estimates for the 2016 financial
year.

The Finance Minister commenting further told
Members that under no circumstances will Ghana
become a Highly Indebtedness Poor Country (HIPC)
again considering the rate at which the economy is
recovering.

But Dr. Anthony Akoto Osei in his address said
the country chalked more successes under the NPP
government led by John Agyekum Kufuor where there
was no crude oil export than the one being
presided over by President Mahama.

For instance, he said GDP growth at the time the
NPP left office in January 2009 was 9.1% compared
to the 3.9% GDP growth rate recorded in 2015 under
the NDC government.

That aside, the size of the Ghanaian economy
under the NPP government increased from
US$5.1million to US28.5million compared to an
increase from US$28.5million to a projected
US$39.4million in 2016 with oil exports.

Source - kasapaonline.com

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