Budget Debate Opens In Parliament

Minority Spokesman on Finance, Moses Asaga (MP) Tuesday, opened the debate on the government’s financial statement for the year 2003, in Parliament and called on both sides of the House to look at the document devoid of politics.

To set the tone, he admitted that sections of the statement contain good intentions, but was quick to add that most of the targets set are unachievable. Mr. Asaga who was criticised severely for describing the budget statement as a “Killer Budget” moments after it was presented to Parliament, said “every minority spokesman worth his salt should at the spur of the moment be able to describe a budget based on certain aspects of it and it is a convention.” Referring to former minority spokesmen and how they described former budgets, the minority spokesman said, “I am on target.”

Leading the minority which strength in the House was reduced as a result of the bye-election in Wulensi, Mr. Asaga said, “In 1979, Hon. Jones Ofori Attah described the Liman’s budget as a killer budget. In 1998-2000, Dr. Apraku (now minister for Trade and Industry) described the NDC budget as Lame Duck Budget from Lame Duck Government. CEPA described the same budget as Dead on Arrival. In all these circumstances, the government of the day was not offended.”

Giving reasons for his description of the budget as a “Killer Budget”, Asaga also MP for Nabdam said fuel prices which of course is part of the budget went up for almost 95% with just a slim increase in the minimum wage in spite of labour’s call for at least 68% increase. This to him is a clear sign of government’s insensitivity to the plight of the working people of Ghana.

He said the argument that increasing wages will fuel inflation is unattainable and a very lame excuse from the government. This policy has a Value Added tax element in it and has affected prices of all goods in the market and has most importantly affected the people’s purchasing power. “The purchasing power of Ghanaians by this particular action has eroded,” Mr. Asaga told newsinghana.

According to the MP, prices of such goods as milk, sugar, rice, hospital and school fees, transportation fares and even prices of the controversial ‘Apuskeleke’ activities have also gone up.

The mention of ‘Apuskele’ drew the Senior Minister, John Henry Mensah to his feet. He wanted to know the sampling method he used to know that the price of apuskeleke have gone up, drawing laughter from the floor of the House.

Mr. Asaga who conveniently ignored the question went on to point out that, empirical studies have shown that petroleum and fuel price increases, government over-borrowing and over-spending and wage increases are the main factors which can cause inflation in the Ghanaian economy.

On government’s targets for this year, Mr. Asaga was emphatic that the government’s targeted net borrowing at zero for this year is a mere political rhetoric, which is unachievable. He called on the Ministry of Finance to be more realistic and review this figure because it amounts to a wild-goose chase.

“Historically, no government has achieved net borrowing at zero. In 2000 government over-borrowed to the tune of ?3 trillion. In 2001, the NPP government over-borrowed by ?700 billion. In 2002, the government promised ?480 billion and net borrowing was ?2.3.”

Mr. Asaga commended the government for moving away from chasing wild dreams such a single digit inflation rate, as was the case last year. However, he noted that the government’s projected GDP growth rate of 4.7% is not ambitious enough and cannot help the country attain her cherished dream of attaining a $1000 per capita income by the year 2015.

Mr. Asaga told an unusually quiet House that in spite of the tremendous goodwill that the government has enjoyed since it came to power, it could only set the same stagnant growth rate that the country has witnessed for the past 10 years.

In the mid 1980s and early 90s, 4.55 growth rate was significant and tremendous achievement considering the fact that Ghana recorded negative growth in 1980-1984. But according to Mr. Asaga, from 1996-2003, if governments are still delivering below 5% GDP, then the economy will not expand, expected employment will not generated and therefore “we will not be able to achieve $1000 per capita income in year 2015 and therefore no hope.” “We must attain economic growth rate of 6-8% otherwise, we forget it,” he added.

Currently, economic experts both from within and without including three members of the minority National Democratic Congress are working closely with government to find solutions to the country’s economic problems.