Editorial - No budget for a better Ghana

  Yesterday, new Finance Minister Kwabena Duffuor read what the NDC government says is a Budget Statement meant to ‘rescue’ Ghanaians from economic doldrums and build the Better Ghana it promised during its electioneering campaign and contained in its manifesto.

But, even a cursory glance a t Dr Duffuor’s maiden budget reveals a document weighed down with rhetoric and very little substance. It is notable for its modesty – in economic growth (5.9%), government receipts (2.7% more than 2008) – and vague in its bold proclamation of investing in people.

Indeed, apart from offering soft loans of about GH¢10m for reforestation, it is difficult to see where else it seeks to create the kind of jobs it offered to Ghanaian youth. It promises to make NYEP permanent, but financial quiet on investment in skills training to offer them some level of permanency in job security.

Described variously as ‘Sakawa’, ‘vague’ ‘contradictory’ ‘cosmetic’ and ‘empty,’ the NDC budget makes broad promises but fails to back it up with actionable plans. For instance, in one breathe the budget promises to increase national revenue but fails to name specifics and in the next promises to reduce taxes.

The only seemingly 'positive' populist policy is reduction in fuel taxes. But even there, petroleum taxes were reduced last year, recording an outturn of GH¢386.2 million, 21.2 per cent lower than the budget estimate of GH¢490.0 million and 4.2 per cent lower than the outturn recorded in 2007. The underperformance of petroleum taxes was mainly a result of the downward revision of some petroleum taxes and levies, as well as a decline in the volume of petroleum products consumed.

Per information reaching this paper, a five percent reduction in petrol prices, a gallon of which now goes for GH¢3.6 will sell for GH¢3.42, a reduction that is so marginal that the difference will go to transport owners rather than passengers.

There is also the pledge to cut down on government expenditure, especially on the Ministries, Departments and Agencies. But a look at the actual figures reveals an increase in expenditure of 28%, from GH¢5,066,113,327 to GH¢6,461,698,073.

The least said about the cosmetic reduction in the number of Ministries and Ministers, the better.

The budget is notable for its modesty. Like one analyst puts it, “It's like a doctor diagnosing cancer and prescribing paracetamol for the patient. Either the diagnosis was wrong or the medication woefully prescriptive as a cure.” Total receipts for 2008 was 9.54bn cedis. Projected for 2009 is 9.78bn cedis! A better budget for a better Ghana indeed! Inflation should ensure that actual receipts and spending this year would be lower than next year. In the coming days The Statesman will be going over the budget with a fine toothed comb, and serialising aspects of it as well, to give the ordinary Ghanaian the opportunity to do his own analysis of the budget meant to build a Better Ghana.

But, this budget is worse than the job of the Sakawa Boys – because at least those 419 boys who work from internet cafes at least have ‘clever’ but criminal ways of making money from greedy fools. This budget even lacks ideas on how to raise funds by stealth taxes from Ghanaians.

It is better termed “We’ve voted for change and regretted”. Translate that in your local languages.