The Deputy Finance Minister, John Kumah, has criticized the member of parliament for the Ajumako-Enyan-Esiam, Dr. Cassiel Ato Forson, for his dismal financial stance on the economy.

Mr. Kumah argued that the Member of Parliament is misinformed about the whole growth of the economy and the data he has with him discredits the MP’s stance.

Earlier, Dr. Cassiel Ato Forson, the Ranking Member of Parliament’s Finance Committee, had stated that Ghanaians should expect further economic hardships this year, 2022.

Dr. Forson forecasted that general goods prices would rise by at least 30%, and that the Ghanaian cedi would reach seven cedis to a dollar by the end of 2022.

The MP made this assertion on the basis of the cedi’s current exchange rate of roughly GH6.5 to $1. According to him, fuel prices are projected to rise by 18 pesewas this week and is more likely to rise again due to the weak cedi.

However, The Deputy Finance minister slammed Dr. Forson for his propaganda on the outlook of the economy. The MP’s assertion, he said, is groundless and has no data to back it up.

“Often, you expect those who are well-informed about development in this economy to speak the truth backed by facts. It is unfathomable to think that a former Deputy Minister of Finance could be this pessimistic, speculative and propagandist on important issues concerning the economy of Ghana. It is therefore important, I state categorically, that all the speculations by Hon. Ato Forson are his own creation and are not supported by data.”
John Kumah

Mr. Kumah maintained that even with the severe COVID-19 effects, the economy is predicted to rise at 4.9 percent. He mentioned that the current administration was attempting to return the economy to a period of great development prior to the arrival of the COVID-19 pandemic.

No Additional Taxes

The Deputy Finance Minister additionally stated that, contrary to the claims of the ranking member of Parliament’s finance committee, the government is not imposing any new taxes.

“On taxes, let me intimate that government is not introducing any new taxes as being speculated. The e-levy as was announced by the Finance Minister is the only levy before Parliament for consideration.”
John Kumah

Hon. Ato’s expectation of an interest rate hike in 2022, according to the deputy minister, is untenable. Mr. Kumah claimed that the banks have been well-positioned to lend to creditworthy clients at lower costs as a result of the banking sector reforms. Despite the fact that NPLs have increased as a result of COVID-19, Mr. Kumah believes, the government is certain that interest rates will not skyrocket. Individuals, businesses, and institutions will be supported with low-cost finance through government programs such as YouStart and GhanaCARES according to the finance expert.

Mr. Kumah further refuted the MP’s criticisms about the government’s reliance on domestic financing.

“On domestically focused financing, Hon Ato’s view that such an approach is bad for the economy is laughable. Our domestic market has proven capable of meeting the funding needs of the government. Through the numerous policy interventions in the market, the market has now become solid and ready to provide the funding needed to support the budget.”
John Kumah

Mr. Kumah further noted that the government, in accordance with the Debt Management Strategy, is conscious of the cost-risk trade-off and would strive to maintain a fine balance and defend the Nation’s interests at all times.