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Government seeks over GH¢25million to shore up economy
By Masahudu Ankiilu Kunateh, Ghanadot
Accra, Aug 28, Ghanadot - The Atta
Mills-led government is seeking parliament's approval for an
additional GH¢252,790,947 to supplement its 2009 budget to
grow the Ghanaian economy.
This was contained in a supplementary budget presented to
Parliament, yesterday by the Finance and Economic Planning
Minister, Dr Kwabena Duffuor for consideration and approval.
The amount is to enable government meet the financial
requirements of certain commitments that were not
anticipated when the 2009 Budget was presented on March 5,
2009, and to “address the inadequacy of the amount of money
approved under the 2009 Budget.”
Justifying the request for the amount, Dr Duffuor indicated
that the government had prudently managed the amount
approved by the House last March, achieving modest economic
gains thereof.
He said having inherited “a run-down economy, characterized
by severe imbalances that resulted in a huge public debt and
ballooned overall budget deficit,” the National Democratic
Congress government had to be judicious in its management of
the nation’s resources, and it was doing exactly that.
Amidst cat-calls and jeers from the Minority Members of
Parliament, (and the majority, as expected, cheered all the
way) Dr Duffuor said “despite the very difficult economy
inherited, the NDC government has achieved notable feats
within six months not by accident but by prudent management
of the economy.”
The minister noted that the anxiety and uncertainties that
characterized the beginning of the year as a result of the
global financial crisis, coupled with “the reckless”
economic management by the previous NPP government, were
properly tackled resulting in a shift in paradigm. “The
anxiety of market and policy makers is giving way to hope,
greater confidence and optimism, and the Ghanaian economy is
beginning to witness some consolidation of the gains
associated with both fiscal and monetary prudence,” he
emphasised.
The Finance Minister noted that the free fall of the Ghana
Cedi had been arrested by the prudent economic management of
the government, with inflation dropping slightly in July. He
however conceded that inflationary pressures were more
resilient than anticipated, warranting a review of the year
end target of 12.5 per cent to a more realistic figure of
14.5 per cent.
Touting more gains made by the government, Dr Duffuor said
“the overall current account registered a surplus of $125.9
million compared to a deficit of $144.9 registered during
the same period last year,” adding that, “it is interesting
to note that the surplus recorded during the first (half) of
this year is the first in so many years.”
Having provoked jeers with that statement, he proceeded to
state that the country’s “gross reserves which had come down
by March because of the pressure on the cedi arising from
the floating of bonds – the two-year and five-year bonds in
2007 – are now picking up. And now we have $1705.2 million,
enough to cover 1.9 months of imports of goods and
services.”
The minister impressed upon parliament that the budget aimed
to slow down what he called the “excessive spending
witnessed in 2008 so as to bring the economy back on the
path of fiscal consolidation.”
That, he assured, the government was well on course to do.
Ghanadot
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