An Economist, Dr. Patrick Assuming, has intimated that measures by government to try tohalt the depreciation of the cedi, is short-termed.
The Economist asserted that the newly outlined measures by the Finance Minister is not going to help address the perennial challenges of the cedi going forward. He averred that what government is trying to do is to get loans to make up for the Eurobonds that it usually has at this time of the year to shelf the cedi.
“The cut in expenditure will not make a significant dent in terms of the debt of the country. We have also seen that there are a lot of measures to try and halt the depreciation of the currency. I think it is short-termed.”Dr. Patrick Assuming
Giving his general reaction to the measures by government to resolve the current hardship, he indicated that there has been a clear attempt to send the signal that government is concerned. This, he was of the view that it’s good government is showing that it is trying to lead the way in terms of cutting its own expenses to reflect the difficult time that the nation is in.
“I don’t think the quantum itself is going to make a significant turn in terms of our expenditure and reducing the debt. At least it sends a good signal because I think some of us have been concerned because, government had been all along asking us to pay a little bit more but we hadn’t seen anything from their side.”Dr. Patrick Assuming
Dr. Assuming intimated that, although measures have been outlined by government, there’s none which shows how the long term challenges of the nation will be fixed. “I didn’t hear specific flagship programmes because some of them are not doing well and which interventions will be put in place to ensure that those challenges are fixed moving forward.”
Measures by government, appreciated
Sharing her view on the measures by government to cushion the economy, Naa Ayeley Adafio Sekyere, Public Relations Officer for Trade Congress Union (TUC), intimated that it’s important to say that every little effort or measure to ensure the nation is moved from the hardship is appreciated. She averred that the measures taken by government so far is good.
“I am told that GHS3.5 billion cumulative is what they will get in terms of the cut. I hope that it comes to fort the economy and hopefully, workers and everybody else in the country will be okay.”Naa Ayeley Sekyere
Touching on the reduction in the petroleum prices by government, Naa Ayeley Sekyere averred that although the Finance Minister has announced some percentage cuts on petroleum products, TUC was calling for actual removal of the taxes on these petroleum products. “And also with this reduction, we will also have to do the math and see how this reduction works out.”
According to her, the government is making effort to ensure things are brought back to its normal state in regards to the economy but questioned how lasting the solution will be. She stated that the efforts to reduce the hardship is appreciated but “to what extent is it going to stabilize the economy is the question?” Earlier, the Trade Union Congress (TUC) called for the scrapping of all taxes and levies on petroleum products to save workers in the country.