We’ve stabilized and grown the economy- Dr. Bawumia

The Vice president of Ghana, Dr. Mahamudu Bawumia has stated that in 4 years, the New Patriotic Party (NPP) has stabilized and grown the economy.

According to him, everything that the NPP has successfully done over the years has been designed to make an impact on the lives and livelihoods of ordinary Ghanaians.

The vice president made these remarks whilst speaking at the government’s Nation Building Updates on Thursday, November 26, 2020, at the Cedi conference hall, University of Ghana.

“In four years we have worked very hard to reduce the economic and human costs of the mismanagement that we have inherited. We have stabilized the economy, created over 2million jobs in the formal sector alone. Kept the power on to power our businesses and industries, invested in infrastructural development in both macro and micro level and implemented far-reaching social protection programs”.  

He assured Ghanaians to look forward to accelerated infrastructural development in the next four years. He stated that the economic challenges that were left by the previous administration were deeper than they thought but with their determination, they have been able to resolve and continue to grow the economy.

“Without a strong economy that we built in the first three years, none of these will have been possible. Broadly we set out the foundation to build an inclusive prosperous Ghana Beyond Aid. Our plan to roll off the human cost of the economic mismanagement and to create the foundation for an inclusive, prosperous Ghana Beyond Aid was anchored broadly on these 7 broad objectives.

“First to stabilize and grow the economy, to transform the economy, to create jobs especially for the youth, to modernize, digitize and formalize the economy, to make development inclusive and protect the vulnerable, fight corruption and to create a safe, secured environment for citizens and businesses to thrive”.

He further stated that economic growth has been doubled in the past three years under the good economic management of the NPP.

“Before the coronavirus pandemic, which has impacted all economies in the world, we reduced inflation and inflation continued to fall, we doubled the rate of economic growth in the first three years. We reduced the exchange rate depreciation. Exchange rate depreciation has been relatively stable with Ghana recording the lowest rate of depreciation in the last 48 years in 2020.

“Notwithstanding COVID and its impartation, even though this is an election year. this year; 2020 is the lowest depreciation since 1992.  And also the average depreciation of the Cedi over the last four years which is about 7.3% is the lowest for any first-term government since 1992.

“We significantly reduced the deficit before COVID. We improved our external deficit position which is stronger today. Today our external position is stronger notwithstanding COVID than it was in 2016. Interest rates are on the decline and along with declining inflation expectations”.

Speaking on the financial sector clean-up, Dr. Bawumia said: “We have cleaned up the mess in the financial sector that we inherited. We took decisive decisions to avoid the collapse of the financial sector. In addition to this, the government on compassionate grounds has decided to pay up to GHS50,000 to all customers of defunct companies.

“And we have saved the deposits of 4.6million depositors and saved jobs which will have otherwise gone if the financial sector had collapsed. Thus far, the government had spent GHS21 billion to clean up the sector and I’m happy to note that the president assured all depositors that they will get the money.

“100% of all bank depositors have received their money. 99% of microfinance institutions have received their money, 99% of savings and loans companies have been fully settled and those that have not been settled have just some issues that they have to deal with the liquidator”.

He also outlined several taxes that have been abolished by the NPP during their first term in office.

“We have abolished or reduced over 15 taxes and levies to reduce the burden of taxes on businesses and individuals and this is unprecedented in the history of economic management in Ghana. It has never happened in the history of Ghana”.

The 15 taxes reduced include the 17.5% VAT/NHIL on real estates, 17.5% VAT/NHIL on selected imported medicines that are not produced locally, the 17.5% VAT/NHIL on financial services, import duty on the importation of spare parts, the 1% special import levy, the 17.5% VAT on domestic airline tickets, levies imposed on kayayei by local authorities, import duty for all goods excluding vehicles 50% and vehicles by 30%, and excise duty on petroleum.