EDITORIAL: Moving the Economy Forward

The statement by Finance Minister Yaw Osafo- Maafo that the economic progress of the nation so far has disappointed is a clear admission that the Government?s economic measures are not working.

Addressing the biennial congress of the Senior Staff Association of the Internal Revenue Service in Accra, the Finance Minister said revenue generation in the country has not kept pace with developmental demands. In effect, we are spending more than we earn. If any company spends more than its earnings that company is insolvent. On the human scale, a person who spends more than his earning is broke. It is as simple as that.

Public Agenda would like to believe that the Administration of the New Patriotic Party knew about the parlous state of the economy before taking the reigns of government. If the Kufuor Administration had no fore-knowledge, it got a clear picture of it immediately after taking office. It is this realization that informed the President and his economic advisers to access the HIPC initiative. That is why we are disappointed that the Kufuor Administration has not stressed austerity as Government policy.

In the first place, it chose to saddle the tax payer with a large Cabinet when the NPP could do with a down-size administration. Quite recently, the government has ordered very expensive fleet of cars for use by the executive. To silence Parliament, Government has guaranteed a $20,000 loan for each of the 200 Members of Parliament to order very expensive cars. At a time most Ghanaians are struggling with ordinary meals for themselves and their children, not to mention the atrocious medical and school fees, it is obscene for Government functionaries to drive around in expensive vehicles.

The furor over the Audit Report or not too ready audit report stem from the realization that Government has spent huge amounts of money to provide comfortable accommodation for its functionaries at a time life in many homes are unbearable. Public Agenda is not suggesting that government officials should have no roof over their heads nor are they to travel for state assignments on bicycles. We believe the government needs to take the people on board on the tortuous route to salvaging the economy. And that means being in trenches of the economic war with the ordinary people of Ghana.

We do not believe spending over ?100 billion printing ?10,000 and ?20,000 notes is what will get this economy out of the woods.

As the Finance Minister himself acknowledged, inflow of foreign capital and investments ?is moving at a rather slow pace.? At the end of the day, the real investment that would take the country away from the woods is in the people of Ghana. That should inform the Government to move with the people rather than looking down on those whose thumps took Kufuor from his private residence at Dzorwulu to the Castle.

Osafo-Maafo and his colleagues heading the various ministries should take note.