House debates Review of Economic policy

Accra, Nov. 11, GNA- Members of Parliament on Tuesday continued the debate on the Review of the Economic Policy of the Government for the 2003 financial year with a call on the Minister of Finance not to be complacent on the achievements so far chalked.

The Minister of Finance, Mr Yaw Osafo-Maafo moved the Motion for the endorsement of the policy and was seconded by the Minister of the Interior, Mr Hackman Owusu-Agyemang.

Mr Abuga Pele, NDC-Chiana/Paga said the policy was not realistic and that the revenue generation as indicated shows that since the 1990's to date, targets set have always been exceeded and there was, therefore, no need to talk much on it.

He said the reality is that there are several tax potentials that still need to be explored and it behoves on the Ministry of Finance to ensure that all such areas are covered and the loopholes blocked to ensure more revenue generation for the country.

Mr Pele said revenue agencies should be adequately supported and motivated for them to improve on their method of collection for independent revenue strategies to be adopted and to less depend on donor support.

He said conspicuously absent from the review is the figure for the external debt of the country since according to him over the past two years, there has been a considerable growth of the external debt.

The Member said if care were not taken the next generations would continue to be saddled with debt payments.

Mr Eugene Atta Agyapong, Chairman of the Finance Committee lauded the review of the budget and said it had made pragmatic approaches that are beneficial to the economic growth of the country.

He said there was, however, the need for the HIPC funds to be extended to the Ministries, Departments and Agencies to enable them to improve on their performance.

Mr Agyapong urged the government to ensure that the macroeconomic stability and reduction of the interest rate are maintained and enforced since they would create the necessary opportunities for development of businesses.

Mr Mike Hammah, NDC-Effutu said poverty reduction should have been targeted at small and medium scale enterprises in the government's economic policy but this has not been the case even though the government claims of propagating "Golden Age of Business". He said economic growth should be broad based and there was the need for the government to have a balancing act to stimulate the growth of the economy.

The member expressed concern about the growth of domestic savings that is declining, not only the lack of trust of the public but the unfavourable banking laws on savings and called for more innovative measures of encouraging domestic savings.

Mr Gabriel Yaw Amoah, NPP-Bosome-Freho called for the preparation of district profiles so that the poverty strategies would be more meaningful for more resources to be channelled to areas where the poverty level is high.

Mr Isaac Nyame Ofori, NDC-Sefwi Wiawso said government should assist workers to better their lot and to also check the increase in tariffs since it was having a telling effect on them.

He appealed to the government to as a matter of urgency, take immediate steps to invest in improving the road network in especially the Western Region and to assist the people to reduce smuggling of cocoa to neighbouring countries.

Mr Joe Donkor, Deputy Minister of Education, Youth and Sports said several gains have been made with the impact of the stability of the Cedi, the HIPC decision and rationalization of the petroleum and energy sectors being the most significant.

He said the government policy initiatives have begun to achieve positive results and that it was in a good spirit that the House must approve the Supplementary budget as a gesture of the need for extra funds for the socio-economic development of the country.

Mr Albert Kan-Dapaah, Minister of Communications said the government was still grappling with post-dated economic problems but gave the assurance that with the pragmatic initiatives being embarked upon the country was sure to experience positive changes.

Alhaji Amadu Seidu, NDC-Yapei/Kusawgu said the Minister of Finance has to explain why he needed additional funds for water supply to some districts when already there is committed donor support in those areas. He said emergency flood control and sanitation funds should be specific to have an impact on the people concerned adding that credible measures should also be taken on land degradation and feeder roads rehabilitation so that the funds are properly utilised.

The member called on government to take a critical look at the way funds are disbursed on the execution of projects by the District Assemblies so that individuals and groups do not unduly benefit against the wishes of the masses.

Mr Dan Abodakpi, NDC-Keta urged government not to be much enthused since the policies are yet to be tested in relation to the international landscape and the donor community's support.

He said even though the economy has made some gains there are still some worrying issues that needed to be tackled such as the over-relying on import tax for revenue mobilisation.

Mr Abodakpi said the country is still trying the liberal economy and depended on donor support and as such, there was the need to check leakages and to put in place measures to ensure that the productive sector is assisted to grow through pro-active reactions to economic growth.