Centre for Policy Analysis (CEPA) has estimated that the Kufuor government would have subsidised petroleum to the tune of ¢1.8 trillion for this year, an average of ¢150 billion a month. The ¢1.8 trillion is equivalent to about 2.3% GDP.
It is said that “there is widespread evidence that election year 2004 would not be much different from previous election years in terms of government giving in to election year spending pressures – the problem of use of incumbency.”
These statements are part of CEPA's review and outlook on the Ghanaian economy in its 128-page report launched last week.
The executive summary concluded that “the current situation and near term outlook depended critically, in the first place, on having peaceful elections whose outcomes were widely accepted. This was important to create the requisite environment to tackle together the fiscal malaise – the trio of the wage bill, transfers to finance subsidies in the petroleum, utilities among other social services sector as well as the public investments in infrastructure necessary for accelerated economic growth and poverty reduction targets in the GPRS and the Millennium Development Goals.