Business News of Monday, 18 March 2013
Source: Tv3 News
Member of Parliament (MP) for Obuasi West Constituency Kwaku Kwarteng has expressed worry over the deficit incurred by the country during election years. He noted the situation is worsening.
In a discussion on TV3’s news analysis programme Headlines; Mr Kwarteng questioned the level of spending that characterised the final quarter of 2012. “If we don’t shed light on what is causing the periodic wild budgeting, we will continue to run into problems every four years,” he said.
He observed that most of the times, the monies are used to campaign. Mr Kwarteng said when the country runs into deficit in an election year, "it takes about three years for us to recover and just then there is another election,” he added.
He said the Mahama-led government spent more than any other government in the last quarter of 2012. “Monies meant for NHIS were used for electioneering,” he cited.
“In the last three months of 2012, NADMO spent GH¢300 million,” he cited. “What were the disasters NADMO managed that they had to spend such an amount?” He also disclosed that there was a huge deficit at the Office of the President.
MP for Nanton Ibrahim Murtala Mohammed, who was also on the programme, acknowledged the high spending in election years, citing that in 2008, there was also a huge deficit.
But Mr Kwarteng further argued that in 2008, the size of the economy was estimated at GH¢30 billion and the deficit was GH¢2 billion. Nonetheless, the NDC had an economy of GH¢72 billion and incurred a deficit of GH¢8.7 billion, Mr Kwarteng argued.
He further disclosed that government has concealed some of its expenditure under the Ministries, Departments and Agencies (MDAs) since, according to him, a budget which was read three months into a year still had the omission of financial reports from some MDAs.
“Ordinarily, the budget statement should have come in November, three months, we are not able to account. Some monies spent are not being accounted for,” he said.