Budget is too conservative - Ken Ofori Atta

The Executive Chairman of Databank Fianancial Services, Mr. Ken Ofori-Atta has said that the budget is severely conservative and not ambitious enough to push the country forward into greater economic prosperity. Mr. Ofori Atta said this when he spoke on the topic ?where are the big heavy audacious goals? at the Databank?s budget seminar on the 2004 budget.

The seminar, which is to be held every year during same period, is the first non-partisan discourse of the bank.

?Why would the government want to achieve a 5.2% growth in 2004 when that was what it achieved in 2003?? Mr. Ofori Atta wanted a higher growth figure.

On the savings rate in the country, he proposed to government to push for regulations or other mechanisms that would make about 5 million Ghanaians save a million cedis each, in every year.

This would amount to about $533 million savings per year, which amount could have saved Ashanti from being merged with Anglo-gold.

He said the budget wants to consolidate gains made so far and push for accelerated growth to achieve the $1000 per capita income by 2008.

Mr. Ofori Atta noted that the country?s donors would have to re-consider their conditions for negotiations whiles such amounts of money were being translated into investments. He said the country was sure to accelerate its growth beyond expectations.

Speaking on the overall assessment of the 2004 budget, Professor Cletus Dordunoo, an economic consultant said, ?the budget is realistic and consistent but is heavily loaded?.

Again, he said the government should be congratulated if they did complete most of the projects outlined in the budget, since for him, quite a number of the projects had been stated in some preceding budgets.

He also opined that the cedi was too strong for Ghanaian business to benefit, meaning that the cedi had become strong for businesses to plan earlier and make profits, thanks to macro economic stability.

The Senior Minister Mr. J.H. Mensah stated in an answer to a question that the private sector must push for more reforms and incentives, if what the government was offering was inadequate, in order to make them respond positively to opportunities granted by governments.