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Second Batch of nominees appear
before Vetting Committee
Accra, July 24, Ghanadot/GNA –The biggest challenge facing
Ghana’s development would be to maintain the microeconomic
discipline that government has adopted over the last six
years.
This observation was made by Dr. Anthony Akoto-Osei,
Minister of State at the Ministry of Finance and Economic
Planning when the second batch of Presidential nominees
appeared before the Parliamentary Vetting Committee on
Tuesday.
Other nominees who appeared before the committee were Mr.
Alhassan Samari, Regional Minister Designate for Upper East,
Mr. Joe Baidoe-Ansah, Minister Designate for Trade,
Industry, Private Sector Development and PSI, and Mr. George
Hikah Beson, Upper West Minister Regional Minister
Designate.
Dr. Akoto-Osei said the greatest constraint or risk facing
the country in view of the current energy crisis must be
looked at in the global contest, by keeping financial
discipline over the years.
“That is paramount. If we move away from the discipline over
the last five years we would be in trouble”, he emphasised.
“We have to be particular with agriculture and ensure that
we keep our hand on the micro and ensure that we grow at 8
per cent. We have not done it before and we need to be
vigilant in ensuring that we do not slip. That is the
challenge. But so far, we have done well having had the
energy crisis last year and still keeping our figures right.
“We have to accelerate in that direction and ensure that we
are on track”, he added.
Dr Akoto-Osei also mentioned the health sector as a key
area, “since without health we would be unable to be
productive and the figures must be kept religiously.”
When asked by Mr Enoch Teye Mensah, NDC-Ningo Prampram about
Ghana’s relationship with the Bretton Woods Institutions on
getting inflows in on time, Dr Akoto-Osei, said: “our
relationship is a double edged sword.”
He said currently Ghana has no programme with the
International Monetary Fund, “as it were in their own
language, we have graduated.”
He said it was however, important to maintain a good
relation in terms of economic performance since most
international bilateral and multilateral bodies have ceded
their assessment to the IMF.
“Ghana is however, continuing the poverty reduction support
programme with the World Bank, and will continue to do that.
Not likely to meet the fund again until after Ghana has gone
to the bond market.
“All they (Fund) have done now is to have had Article Four
Consultations with the country. They come in, do a report
and go back after their findings. We are however seeing
whether we should go back into the Poverty Strategy
Initiatives with the Fund,” he said.
He maintained that the Cedi has been stable against the
major international currencies, noting that even though
trading heavily in Euros, the much trading takes place in
dollar terms and the cedi has been performing well against
the dollar.
He said the problem of delays in release of funds for the
District Assembly Common Fund and the National Health
Insurance Scheme was not a deliberate effort by the Ministry
of Finance and Economic Planning, “but rather due to delays
in the officials’ response to applying to the Ministry of
Finance for their monies.”
He said there was no arrears, since the Ministry of Finance
cannot, on its own, approve the money. It is Parliament
which must approve it. “If Parliament has not approved the
budget or the money we cannot pay it out. We must ensure
that they are spending money on what they have been asked to
do. There are procedures that must be followed.”
On the removal of the tax on imported poultry products, Dr
Akoto-Osei said it was a decision the former Minister of
Finance took within the purview of ECOWAS Protocols.
He noted that on the average incomes have been rising,
especially when inflation has not been rising as high and
frequently as before.
On the 1000 dollar income target towards the attainment of
middle income status, he admitted that, “it was not enough;
but it is what we have set ourselves and working towards
it.”
Mr Alban Bagbin, Minority Leader argued that it was not
right to say that at a 1000 dollar per capita income level,
Ghana could be considered a middle income country, since
Botswana had more than 3000 dollar per capita income and yet
is not listed as middle income county.
On the Energy situation, Dr. Akoto-Osei said it was a bit
challenging, “but we are on target, especially since we
carried the crisis into this year and still met the targets.
“What we are worried about is the growth rate and evidence
so far shows that our projections are on target,” he
explained stressing that, we are just in the middle of the
year, by September we would be able to say if it has had any
such effect on our projections.”
Dr. Akoto-Osei said the Minister of Finance would be in the
House on Wednesday to present a supplementary budget to
Parliament in view of the energy situation, which was not
actually factored into the budget presented in November last
year.
GNA
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