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DFP: Budget
failed to address “disturbing economic issues”
Accra, March 11, Ghanadot/GNA – The
Democratic Freedom Party (DFP) said on Wednesday gave a
mixed reaction to the 2009 budget lauding the government for
some actions but criticising it for others.
The party said the budget failed to address the most
disturbing economic issues, which it identified as inflation
and depreciation of the currency.
“The Minister failed to outline adequate measures the
government intends to take to stabilise the macro-economic
environment in order to build confidence in the economy,”
DFP said in a statement signed by Mr Bede Ziedeng, General
Secretary.
“It is the view of the DFP that building of confidence in an
economy is the single most important factor that will help
generate the necessary revenues that will enable government
to prosecute both its economic and social agenda.”
DFP said instead of introducing tariffs on food imports to
protect local production, government should have provided
subsidies to the agriculture sector.
“This is what government has done for the cocoa sector in
the past, to boost production, and the same ought to be done
to the rest of the agricultural sector.
Merely attempting to ward off foreign food imports through
the imposition of tariffs is inadequate.”
DFP hailed the decision to provide school uniforms to pupils
and increase the capitation grant, but pointed out that one
of the challenges of the capitation grant was that it was in
huge arrears and asked for “specific measures” to for
effective implementation of the policy.
It said the real challenge in the education was the
provision of adequate facilities such as classrooms and
offices, laboratory equipment, teaching and learning
materials and training of teachers.
DFP described the reduction of fuel prices as “window
dressing” as they was not far-reaching enough to make any
significant impact on the cost of living.
It commended the government for deciding to cut down on its
expenditure and expressed the hope that it would stay
committed to it.
DFP, however, questioned the rationale behind the policy of
putting all government revenue including GETFund, Road Fund
into one basket, saying they were created to deal with
specific economic challenges.
“On the whole, the DFP is happy to note the government’s
intention to continue with most of the projects and
programmes initiated by the previous regime in line with the
Directive Principles of State Policy as laid down in the
constitution.
GNA
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