The Minister for Information, Kojo Oppong Nkrumah, has told Parliament that the government, through the 2024 budget, is looking to continuing with projects that have already commenced.
According to the minister, projects will not be started if there is no financing to complete them, a move, he described as the government’s development agenda.
The Ofoase-Ayirebi Member of Parliament was on Tuesday, November 21, 2023 on the floor of Parliament debating the 2024 financial statement and the economic policy of the government, presented to the House last week by the Minister for Finance, Ken Ofori-Atta.
Kojo Oppong Nkrumah stated in his submission that, “Mr. Speaker, the third part of the policy that I want to highlight is the development agenda. Growth has translated into some development and you will find that the very simple way that the administration has put it is that, we are looking to continue projects that have been started, not necessarily starting new projects that have not been funded, and to crowd in some more resources to achieve it.”
SENSIBLE
Dealing with the economic policy, the Minister for Information argued that the budget was full of sense and pragmatic, one that would boost the economic growth Ghanaians envision.
He debunked the claim by the minority that the 2024 budget was useless and empty, adding that the objectives of the budget were those Ghanaians were looking forward to.
ALLOCATIONS
He referred to Appendix 4A of the fiscal policy and requested his colleagues to examine the allocations to the specific areas selected to engineer the growth the government was looking for.
He mentioned, for instance, that an allocation of GH₡3 billion has been made to support agriculture, GH₡298 million has been allocated for fisheries and aquaculture and GH₡1 billion to the trade and industry ministry.
It was his hope that the minority would see the bigger picture and support the 2024 budget to propel the economic growth that the government anticipates for the nation.
He was the first person on the majority side to debate the budget after seconding the motion moved by the Minister for Finance, Ken Ofori-Atta, for the 2024 fiscal policy to be scrutinised and supported.
FISCAL CONSOLIDATION
The second person from the majority was the Deputy Minister for Finance, Abena Osei Asare, who is the MP for Atewa West.
The 2024 budget, according to her, highlights fiscal consolidation, debt sustainability and efficient management of existing commitments without allowing election-year expenditures to derail the gains.
She indicated that the government, while committing itself not to start new commercial loan-funded projects, has also allocated funds in the 2024 budget to clear arrears for existing ones.
She said the government hopes to bring the debt to GDP to 55% in five years, considering the revenue to be raised, coupled with the efficient management of the expenditure.
“Also, as part of our commitment to defy the temptation of election year expenditure, we are projecting a positive primary balance. And clearly, whenever we have to pay our interest, we are not paying from a deficit position, but rather we are paying from a positive position. And we believe that will go a long way to also help us,” she argued.
INCORRECT FIGURES
Opening the debate for the minority, its spokesperson on finance, Isaac Adongo, MP for Bolgatanga Central accused the government of presenting incorrect figures to paint a bright picture about the economy.
Referring to the government’s projections on the GH1 trillion GDP by the end of 2024, Adongo claimed it was understandable.
According to him, per the projections of the government about GDP growth and reducing inflation, the economy should be growing at over 20% and not 2.8% as stated in the budget.
He accused the government of assessing the performance of the economy with nominal GDP instead of real GDP, saying “That should tell you that something is wrong. Your economy is in trouble.”
To Adongo, the GH₡219 billion GDP under Mahama, where prices of goods were affordable is better than the projected GH₡1 trillion with hardship.
“Mr. Speaker, which one will you prefer? A GDP of GH₡209 billion where you go and buy one gallon of fuel or petrol for GH16 and an economy of GH₡1 trillion where you go and buy 1 litre for GH₡24,” he stated.
MUCH IS EXPECTED
The Member of Parliament for Yapei-Kusawgu, John Jinapor, argued that the NDC, in its last eight years, grew the Ghanaian economy by 6.475% in terms of average real growth and not nominal.
On the contrary, the NPP, which has almost done eight years, Jinapor stated that it will be doing 4.3% average real growth from 2017 to 2024.
He stated that the consumer price index is in favour of this government. He cited that gold prices on the international market have increased, cocoa beans and crude oil have all increased, adding that “Mr. Speaker, there is a popular saying that to whom much is given, much is expected.
He identified from the budget that the government has decreased credit to the private sector to 2.8% from 41%. He argued, however, that credit to the private sector determines growth.
According to him, from the foregoing, the Minister for Finance cannot tell Ghanaians that the government has turned the corner.
