The 2018 budget recently presented by Minister for Finance, Mr Ken Ofori Atta to Ghana’s parliament lacks the capacity to grow the economy, the Member of Parliament (MP) for Bole/Bamboi Constituency, Hon Sulemana Yusif has said.
According to him, although the country was in dire need of growth given the current economic times, the 2018 budget was not an option in giving the economy a leap.
Hon Yusif said this when he shared his views on the 2018 Budget statement with THE REPUBLIC at parliament in Accra yesterday.
For the 2018 budget, he said expenditure growth was misdirected, pointing out that there were no stimulants for growth.
“It is not an expansionary budget, we are not spending our way to growth, the one district one factory and the one dam one village are not been properly captured as to how the funding will be run, so this budget do not add appetite to entice investors and build their confidence,” he said.
In the view of the Bole/Bamboi MP, the idea of industrializing the country dated back in day of post Independent led by Dr Kwame Nkrumah and that the one district one factory is not new.
He added that, the National Democratic Congress(NDC) started similar rural industrialization with some funding by Exim bank where over 31 rural industries were to be run in the country.
This, Hon Yusif questioned the NPP government credibility in establishing industries which in his view was not novelty and that, the government was just brainwashing gullible youth into believing that they would get employment in factories.
He also questioned the cost of borrowing or loanable banks to fund the so call one district one factory, asking, “at what cost are the banks willing and are ready to provide loans to promoters of the factories or the industries.
He added, “Inflationary projection in the budget is not realistic. Government is silent on subsidy on fuel or petroleum products, and minimum wage. The projection for non-oil revenue is not realistic and the deficit gap may widen after all.
Mr Yusif said, the announcement of reduction of electricity tariff is not realistic, and described the 2018 budget as a very ambitious one.
He said, “the government is being too optimistic without a clear plan of how to achieve the target. In the2018 budget, the government had distorted the budget cycle. This will affect implementation of projects and programmes accountability. We need to have a clear budget cycle.”
He pointed out that, the $1million dollar per each of the 275 constituency is not real and he foresee a wide margin in the budget implementation, stating, “the Government ambition is relatively magical.”
He added, “as a country we are not learning from the challenges or problems and this government is not learning from the problems of 2017 budget. It is likely we fall into same mess. Our budgetary woes have become recurrent, and we are not learning from the past.”
Hon Yusif said that the budget had a low capital spending compared to previous years. This, he said, was disaster for the economy and Ghanaians would regret it.
He added, “That the budget is not focusing more on infrastructure is a bad way to go.But fuel subsidy areas are becoming a huge threat to the economy and the budget is rather silent on it calls for worry.
He further observed that the private sector participation in the budget was not made clear especially in terms of infrastructure financing. There is no clear cut point how the private sector would play it role.
Hon Yusif mocked that, the budget is a just a symbolic but lack credibility, saying, he would not be surprise if it is written by Pastor Owusu Bempa, a self acclaimed prophet and member of the NPP.
Source: therepublicnewsonline.com/Felix EngsaligeNyaaba