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A Ranking Member on the Finance Committee of Parliament, Dr Cassiel Ato Forson, has bemoaned the deteriorated state of Ghana’s economy which he says has prompted outrageous enduring among the Ghanaian populace.
According to him, the current deplorable state of the economy is a result of mismanagement by the Akufo-Addo/Bawumia government and not the Covid-19 pandemic as some have been misled to accept.
Speaking on Monday at a forum named ‘Policy Dialog on the Economy’ at the UPSA Auditorium in Accra, the Member of Parliament for Ajumako-Enyan-Essiam disclosed that the Akufo-Addo/Bawumia government’s unrestrained getting, as well as the budget deficit, is responsible for this.
“The main causes of the current hardships are the twin problems of the largest budget deficit (15.2%) in late history and a gagging obligation overhang that threatens the stability of the Ghanaian economy” he stated, adding that “… the hardships arising out of the deficit and obligation situation is the immediate result of mismanagement of the economy and misplaced populism by this government.”
He cautioned that if the government didn’t slow down the current situation, the nation will encounter a decrease in capital consumption even as it spends more on interest adjusting.
He added that wages of public area laborers may not be increased and the government will rather increase taxes, a situation he anticipated will be captured in the impending mid-year budget audit.
As part of his recommendations, Dr Forson maintained that the following year and a half will be crucial for Ghana, and therefore asked the Akufo-Addo/Bawumia government to “be strong to come clean with the Ghanaian public that the economy has been driven into a trench and will require earnest fiscal measures to haul it out of the trench.”
He warned that failure by the Akufo-Addo/Bawumia government to do as suggested, inside the following year and a half, would open Ghana to a high risk of default on its obligation administration obligations which will dive the country into a lot further economic crisis.
The data-based engagement united representatives from common society, the media, academia, professional groups among others as part of the dialog on the economy and government strategies.