The next NDC government has promised to commit $10 billion to building robust infrastructure for economic transformation when elected into office come January 7, 2021.
The fund forms part of a broad program tagged “the ‘Big Push’ for Infrastructural Development and Economic Transformation”.
This was disclosed at the manifesto launch of the party at the university of professional studies in Accra yesterday.
The NDC explained that, the low level of capital expenditure in the country will not permit the Ghanaian economy to gain the momentum it requires for the restoration of the desired economic prosperity.
According to the NDC, capital expenditure is less than 3 percent of GDP as it has slowed down considerably over the past three and half years. And the COVID-19 is expected to slow it down further. The ‘Big Push’, the NDC explained, is required to turn things around.
“Capital expenditure in the last three and a half (3½) years, under the NPP Government, has consistently remained below three percent (3%) of GDP. At this level, our economy cannot deliver the growth momentum required to restore us to economic prosperity and development. For the next NDC Government, the level of investment in the Real Sector will be our true measure of performance”.
The NDC explained that the $10 billion Fund will be used to build robust infrastructure like roads, railways, port expansion, inland ports, hospitals, social housing and multipurpose markets in every part of the country.
A key component of the ‘Big Push’ is a transportation plan made up of three (3) major projects: The Eastern Corridor; the Golden Triangle; and the Western Corridor Project. The NDC manifesto has outlined selected roads that will be constructed in these areas that they [the NDC] believe are very vital for sparking the needed growth and development in the country.
The NDC further stated that they will ensure that Government expenditure policies are designed to contain fiscal deficits within sustainable levels consistent with Government growth strategies and policies.
Based on this, the NDC said they will re-direct government expenditure towards high growth areas to create the necessary and sufficient conditions for social spending to thrive.
“To eliminate the risk of fiscal unsustainability and its long-term implications on debt, the next NDC Government from 2021 through to the medium-term, will redirect Government expenditure towards high growth areas to create the necessary and sufficient conditions for social spending to thrive”.
Still on infrastructural development, the NDC said, they will restore the transfer of 2.5 percentage points of existing VAT to the Ghana Infrastructure Investment Fund (GIIF) when they come into office. According to them, the GIIF was established by the John Mahama administration with the mandate to deliver infrastructure projects in Ghana for national development.
The GIIF, the NDC noted, has the potential to create One Million Jobs along its value chain.
Furthermore, the NDC said they will promote local content for local contractors in all sectors of the economy to increase the contribution of Ghanaians to a minimum of 55 per cent of GDP and improve Ghanaian ownership and participation in the economy.
The NDC added that where the contracts are financed by foreign loans, the legislation will ensure that a significant portion goes to local companies.
Massive infrastructural development is very important in economic development as it creates production facilities that facilitate other economic activities. It also improves competitiveness by reducing trade costs as well as transaction costs.
The investment in infrastructure especially in the transport sector will help reduce the annual post-harvest losses that has been a major problem to farmers over the years. Therefore, if the NDC are also to implement these policies, it will help ensure food availability which is one of the major components of the measurement of food security.
Also based on the inflationary trends over the years, it is observed that a major contributor is increase in food prices. Transportation costs have been a major factor driving up the cost of food in Ghana. Proper roads will make it easier to carte the goods from the farms in the country side to the city where there is huge demand for food.
Investment in infrastructure is very good for sparking the much-needed growth in our economy. But as to whether the NDC will deliver their campaign promise should they come into office is a question that is yet to be answered.
