Gov’t has abandoned its economic programmes — Oppong Nkrumah
Ranking Member on Parliament’s Economy and Development Committee, Kojo Oppong Nkrumah, has accused the government of abandoning its key economic programmes and relying heavily on the domestic gold purchase programme to stabilise the economy.
He said the government’s failure to meet its revenue targets had constrained its ability to fund programmes it promised Ghanaians.
According to him, the government’s decision to use foreign exchange to support the cedi is also creating unintended consequences for local businesses and employment.
“After all the gymnastics that he did, that he has removed some taxes, he won’t bring taxes. He brought eight new taxes and then plus one in this last budget. And after all of that, we are still sitting at 16% of GDP. We haven’t reached that 18% that he promised,” Oppong Nkrumah said on Metro TV’s Good Evening Ghana on Thursday, August 27.
The Ofoase Ayirebi MP argued that the revenue shortfall was forcing the government to suppress expenditure in order to achieve its targeted primary balance.
Oppong Nkrumah further criticised what he described as the government’s increasing reliance on foreign exchange interventions to keep the cedi stable.
He said the approach is effectively subsidising imports because imported goods are becoming cheaper compared to locally produced alternatives.
“By doing that, actually, what you are doing is that you are subsidizing importation. So now, imported products of a certain caliber are cheaper than the locally manufactured component. So you are subsidizing importation, and then you are exporting those jobs,” he said.
The former Information Minister cited a reported GH¢93 billion obligation at the Bank of Ghana and additional arrears as issues that could place pressure on the economy.