The Member of Parliament (MP) for Ajumako Enyan Esiam and Ranking Member on the Finance Committee, Dr. Cassiel Ato Forson, has described the 2023 budget and fiscal policy statement presented by Finance Minister, Ken Ofori-Atta, as nothing but mere good speaking.
Dr. Forson claimed that not only did the budget lack substance, but the Minister failed to furnish Parliament with the complete document so the house can do a proper analysis of it.
“The Minister after reading the budget has failed to provide us with the budget statement which includes the appendixes where the numbers can actually be found and critical analysis of government economic policy can be done. What he gave to us was nothing but grammar.”
Dr. Ato Forson, MP
The Ajumako MP who speaks for the Minority on fiscal matters, feared that Ghana’s ailing economy will completely die off should Parliament adopt Ken Ofori-Atta’s budget.
“He [the Finance Minister] has informed us clearly that the Ghanaian economy is indeed, in an Intensive Care Unit. And obviously as the Minority Leader said, if you are in Intensive Care Unit, you either die or recover. But unfortunately, the dose [the budget] they [government] gave to us today, if care is not taken will result in our economy dying.”
Dr. Ato Forson, MP
Issues Raised By The Minority on the Budget
Dr. Ato Forson mentioned a number of observations the Minority caucus made in the budget which it claims won’t be helpful for Ghana’s economy.
The Minority was particularly concerned about government’s intention to freeze public sector employments in the ensuing year.
“This Minister has informed us that going forward to the year 2023, there is going to be a freeze on employment at a time when we know that unemployment, particularly with the youth, is in excess of 50 per cent,” Dr Forson bemoaned.
The caucus was also concerned about the increase in Value Added Tax (VAT). The Minority spokesperson of Finance said that the increase in VAT is a prove that “this government [is not] aware of the fact that this economy has introduced an unbearable hardship to the citizens of this Country.”
Dr. Forson explained what the proposed increase in VAT by 2.5% actually meant. “Simply put, VAT will be 21% but the effective rate of VAT is going to be 22%,” he explained.
“Additional taxes is simply going to mean that the people of Ghana are going to go through excruciating hardships going forward.”
Dr. Ato Forson, MP
Meanwhile, the Ajumako MP was not in anyway enthused about government’s proposed adjustment plans and debt restructuring.
The Ranking Member on the Finance Commitee claimed that, government’s adjustment programme was nothing but “empty”. According to him, government intends to burden the taxpayer while it does nothing about its own expenditure.
“Unfortunately, the adjustments that the Minister announced did not show us how he intends to cut down government’s expenditure. The things that he announced there are nothing but empty; it will not result in where proper expenditure cuts must come from.
“What we can see is that the government is shifting the adjustment programme to the ordinary Ghanaian where the tax payer will be made to pay more.”
Dr. Ato Forson, MP
Again, the Minority opined that the debt restructuring government is proposing is going to affect the investments of domestic bond holders.
“If you are a domestic debt holder, bonds is going to be affected by the debt restructuring. So whatever year bonds, as long as it is domestic, [will attract] some form of haircuts,” Dr. Forson disclosed.
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