NDC's ‘New Economy’ is not different from the already new economy Ghanaians are suffering – Minority

The Minority in Parliament has raised doubts about the government's ability to implement its proposed New Economy agenda, warning that weak revenue mobilisation could derail the programme.

The Ranking Member on Parliament's Finance Committee, Dr Mohammed Amin Adam, said the initiative risked becoming another political slogan if the government failed to generate sufficient revenue to finance its proposed projects and policies.

Speaking at a press conference on Tuesday, November 10, ahead of the presentation of the 2027 Budget, the former Finance Minister argued that the economic realities confronting ordinary Ghanaians did not reflect the government's claims of improving economic conditions.

He cited concerns among traders over declining sales, farmers struggling to find markets for their produce and cocoa farmers facing reductions in producer prices as indications of the difficulties facing households and businesses.

Dr Amin Adam also questioned the difference between headline inflation figures and the actual cost of living, arguing that the reported inflation rate did not adequately capture the financial pressures experienced by ordinary Ghanaians.

He further criticised the government's salary adjustments for public sector workers, pointing to increases of 10% in 2025 and 9% in 2027 and 2028.

He contrasted these adjustments with the nearly 30% salary increase granted in 2024, when the country was experiencing what he described as an economic crisis.

Beyond the prevailing economic conditions, Dr Amin Adam questioned the government's proposed funding arrangements for the New Economy programme, arguing that the additional fiscal space being relied upon would still have to come from revenue collected from Ghanaians.

“As far as we are concerned, if you look at the New Economy from another perspective, Ghanaians are right to say that they are already in the new economy. What they will present may be a cosmetic economy because the real economy Ghanaians are facing is what can be called the New Economy, because that is new to us.

“Before the NDC government came to power, things were improving. But as soon as they came into government, we saw things sliding backwards. The government merely wants to rely on the one percentage point of GDP that the IMF has allowed it to use as fiscal space by lowering the primary balance on a commitment basis from 1.5% to 0.5% of GDP.

“But this is not money coming from anywhere. It is revenue that has to be generated and collected from Ghanaians,” he said.

The Minority Ranking Member warned that the proposed economic transformation agenda could encounter the same implementation difficulties as the government's 24-Hour Economy programme if revenue mobilisation challenges persisted.

He argued that poor revenue performance had already affected the execution of some flagship government initiatives and questioned whether the New Economy programme would deliver a different outcome.

“The evidence shows that this government has been under-executing its flagship programmes because of poor revenue performance. And we do not expect anything different from what is going to happen under the so-called New Economy,” he said.

The government is expected to present its economic priorities, revenue projections and expenditure plans when the 2027 Budget is laid before Parliament on Wednesday, November 11.