Budget Reaction

Accra, Nov. 18, GNA - A former Finance Minister, on Wednesday observed that there are some positive indicators in the performance of the macro-economy with the achievement of stability in the performance of the cedi and the decline in inflation.

Mr Yaw Osafo Maafo who made the observation said government however needed to move quickly to raise domestic revenue.

He said Ghana could not rely on financial inflows from outside due to the effects of the global downturn and therefore it was worrying and dangerous that Finance Minster, Dr Kwabena Duffuor had indicated that domestic revenue had gone down.

Mr Osafo Maaafo was reacting to the 2010 budget statement after it had been presented by the Minister on the floor of parliament.

Highlights of the budget focused on the need to protect the local economy, work on fiscal discipline, check loop holes in revenue mobilisation, generate and spread revenues from the oil and gas find to benefit all and to address the issue of schools holding classes under trees.

Mr Osafo Maafo said it was good that the 2010 budget was going to halt rice, chicken and fish imports to protect domestic economy but government needed to move to boost rice production since it had become a local staple.

He said targets should be set for attaining self sufficiency in local rice production to sustain any programme on protecting the economy.

On whether government's target of putting up infrastructure and school facilities to solve the issues of schools holding classes under trees, Mr Osafo Maafo said this was possible because of the Ghana Educational Trust Fund.

Meanwhile, the majority National Democratic Congress (NDC) in Parliament have lauded the budget saying it was going to strengthen and grow the economy.

Mr Moses Asaga, NDC member for Nabdam, said an economic growth rate of eight per cent was going to drive the economy into a middle income country.

He said government was going to check all the loop holes and mobilise domestic revenue by for instance, revising the method of collecting the talk tax by doing the deduction in advance.

On boosting local rice production to sustain government's bid to stop rice imports, Mr Asaga said rice production was going to be given lots of support through mechanisation and the use of fertiliser.

Mr Simons Addai, NDC member for Techiman South, said what was needed was for the government to work on raising domestic revenue.

He said it was a step in the right direction that the 2010 budget was discouraging rice importation.

Mr Mattias Puozaa, NDC member for Nadowli East, describing the budget as "poor and rural friendly" said with the support to be given to local production of rice, farmers and the rural poor would now have a ready market for their produce.

Mr Alfred Abayateye, NDC member for Sege, describing the budget as a "straightening and growing budget" said with the huge debts inherited from the New Patriotic Party administration, government was now straightening the lapses left behind before growing the economy.

The Minority in Parliament on Wednesday gave several names to the 2010 Annual Budget presented by Dr. Kwabena Duffuor, Minister of Finance and Economic Planning, as a way of registering their displeasure with the government's economic policies.

While some of them described it as "Enko Yie," literally meaning "it is not going well," "Eko Nyaa" meaning "it is going slowly" and "Yewuo" budget, meaning "we are dying," others described it as "Team B," "Sakawa Two"and the "Extension of the National Democratic Congress (NDC) Manifesto" into the House of Parliament.

These issues manifested when the Ghana News Agency interviewed some minority members to find out their reactions to the Minister's presentation.

Miss Cecilia Abena Dapaah, New Patriotic Party (NPP) member for Bantama, said the budget was "uninspiring" and therefore could not take Ghanaians out of illiteracy and poverty by 2015.

She said the Minister's failure to mention crucial issues such as housing, water and health was endangering the industrialization programme since every industrialized nation should be able to boast of basic needs such as food, shelter, and water.

"For me this budget cannot lead us to achieveour Millennium Development Goals and Itherefore cannot see any light at the end of the tunnel."

Mrs Gifty Eugenia Kusi, NPP Member for Tarkwa/Nsuaem, said she was happy that the NDC was continuing with some of the programmes of the NPP administration adding that it was a demonstration that the NDC government had no ideas to start new programmes.

She said she was disappointed that nothing concrete was mentioned of the school feeding programme, capitation grant and social interventions for the poor, children and deprived in society.

Mr Godfrey Bayong Tangu, NPP Member for Wa East, said the budget had demonstrated that the NDC government had no ruling style and was therefore depending on ad hoc programmes which could not release the country from perpetual hunger and poverty.

He said as social democrats, the NDC Government needed to initiate social interventions devoid ofinternational funding in order not to derail their programmes anytime funding was stopped.

Mr Tangu said developing key areas such as education, health, roads and hospitals were very instrumental to the total development of the country and therefore should be seriously pursued.

Mr. Joseph Boahen Aidoo, NPP Member for Amenfi East, said the government's desire to mine iron ore in the Oppong Maase Valley was untenable as the project needed not less than one billion dollars to commence which the government could not provide.

He called on the government to concentrate on fixing the economy rather than using propaganda to score cheap political points.

"The NPP left office with a GDPrate of 7.3 per cent only for the NDC government to reduce it to 4.7 per cent and I wonder if they can achieve their target of eight per cent next year."

Mr. Hackman Owusu Agyemang, NPP Member for New Juaben, described the budget as the extension of the manifesto of the NDC which could not give any meaning to the suffering masses in the country.

GNA