Gabby defends Danquah Institute's budget projections and says 2010 budget is “Cut-and-Paste”

Gabby Asare Otchere Darko

Listen to the attached audio© Copyright myjoyonline

The Executive Director of the Danquah Institute, Gabby Otchere Darko says he is least convinced that the 2010 Budget and Economic Policy of the ruling National Democratic Congress government has any potential to stimulate growth.

The government themed the 2010 budget as one for "Growth and Stability" which gave effect to its commitment to create a "Better Ghana" for growth, equity and sustainable development for all.

But describing the 2010 Budget presented to Parliament on Wednesday, November 18 by the Minister of Finance and Economic Planning, Dr. Kwabena Duffour variously as “vague”, “cut-and-paste” and lacking in detail in many areas, Otchere Darko said the document confirmed the Institute's prediction that Ghanaians would be asked to pay more in taxes.

Gabby was defending the Danquah Institute's pre-budget predictions that, among others, the Government was "very likely" to miss its revised end-of-year inflation target of 14.5%, despite projections by the highly reputable Centre for Policy Analysis (CEPA) that inflation could fall to 14.2% by the end of December.

He was speaking to Ekuorba Gyasi on Adom FM's Dwaso Nsem programme Thursday morning.

The policy think-tank had said it suspected that the Finance Minister was having problems covering a large financing gap in the budget and that it was clear that Government's decision to reduce some petroleum taxes for political reasons had reduced its “fiscal maneuverability.”

“Under such circumstances, the temptation to increase taxes on petroleum products, reverse some of the tax waivers granted in 2008 on food imports, as well as reduce the number of items that enjoy VAT exemptions may be strong. However, the negative effects that any increase in taxes may have on an economy that has suffered serious confidence crisis this year should be given the necessary consideration,” the Institute had projected.

Gabby however, commended the government's policy on taxing the mining companies more except that the intention appears only as a proposal. Another positive is that Government is on course on its target deficit as well as growth targets in Agriculture. Again government's plans to support the disabled in a positive one, albeit details are sketchy.

Listen to the attached audio for Ekuorba's discussions with Otchere Darko [Audio is in Twi]

Story by Myjoyonline