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Politics of Friday, 31 July 2020

Source: peacefmonline.com

Ofori-Atta has no right to suspend fiscal responsibility law - A.B.A Fuseini 

Alhaji A.B.A Fuseiniis MP for Sagnarigu Alhaji A.B.A Fuseiniis MP for Sagnarigu

Member of Parliament (MP) for Sagnarigu constituency in the Northern Region, Alhaji A.B.A Fuseini, is upset with government’s suspension of the Fiscal Responsibility Act which requires the deficit to be kept at a maximum of 5 per cent of GDP.

He claims the move is “absolutely wrong” after calling on the Finance Minister who announced the Fiscal Responsibility Act deferment in his mid-year budget presentation to be sacked with immediate effect.

“God will judge NPP one day. The Finance Minister has no right to suspend that. He is not above the law. He is not an extraordinary citizen,” A.B.A Fuseini said in an interview on NEAT FM’s morning show ‘Ghana Montie’.

Finance Minister Ken Ofori-Atta in his mid-year budget presentation last Thursday stated: “From developments thus far, it is clear that the fiscal rules of a deficit not exceeding 5 percent of GDP and a positive primary balance enshrined in the Fiscal Responsibility Act, 2018 (Act 982) are neither feasible nor attainable targets in this emergency period of the COVID-19 Pandemic."

“The scale of damage and macroeconomic distortions caused by the pandemic is unprecedented in our country’s history. It may take a while to return to the pre-COVID-19 fiscal path. According to our revised fiscal framework, the economy is not likely to return to the 5 percent fiscal deficit threshold set in the Fiscal Responsibility Law sooner than 2024," he said.

“Consequently, as required by section 3(3) of the Fiscal Responsibility Law, the government will within 30 days present before this August House the necessary documentation that supports the suspension of the fiscal rules and targets for this year 2020,” the minister added.

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