Macroeconomic statistics lack consistency - Nii Moi

Accra, Nov. 24, GNA - Dr. Nii Moi Thompson, an economist on Friday challenged the basis for arriving at certain macroeconomic indicators of the country, saying there existed internal inconsistencies which must be explained.

Reacting to questions on the 2007 Budget statement, he said some of the figures quoted in the budget such as the GDP and the reasons assigned to lacked consistency adding, "There is the possibility of mis-measurement and the tendency to be political with statistics." He said GDP was projected at 6.2 per cent to be driven mainly by substantial growth in the electricity consumption in the mining and the manufacturing sectors however the figures quoted for the sectors were insignificant to support.

Dr Thompson, who was speaking at a press briefing on the budget organised by the Integrated Social Development Centre (ISODEC) in Accra explained that given an overall growth in electricity consumption of 23 per cent, the manufacturing sector grew only by about 4 percent.

"We are inflating the numbers both figuratively and nominally. Some of our statistics are contaminated by improper calculations," the economist said.

Presenting a reaction statement on the budget, Mr Vitus Azeem, Coordinator, Centre for Budget Advocacy said however that increases in GDP growth rates, reduction in the rate of inflation and stable exchange rates do not in themselves translate into improved livelihood of ordinary citizens if there was no market for their increased production and access to increased quality education and health care.

He said there was an improvement in the fiscal deficit which reduced from 6.7 percent of GDP in 2002 to 2.3 per cent of GDP in 2005, it must be noted that the fiscal deficit as at September 2006 was 4.4 per cent an indication of a worsening situation.

On the enhance salary structure, Mr Azeem said the wage bill of 13.2 trillion cedis announced for the year 2007 might not be enough to provide the comprehensive and enhanced salary that government had promised therefore workers should not be enthusiastic to avoid disappointment.

He said the budget was overloaded with proposed road construction projects some of which had been on our statements since 2001 but one would have expected a "Jubilee Budget" to perform the act of cleaning up and proposing to mob up all ongoing projects.

Mr Azeem said government appeared to be distancing itself from its role of providing affordable housing to the people since the issue has featured in the budget since 2004.

He said little was achieved in that regard and the fact still remained that the ordinary Ghanaian could not access loan from commercial financial institutions.

"We call on government to be more concerned in the urgent need for provision of affordable housing to the people which has led to increasing development of slums," Mr Azeem said.

The focus on the private sector by government, he said was too much and such rigid stance must be reviewed.

"An efficient public sector definitely promotes and facilitates private sector business while individual citizens required rules and regulations to protect them from extortions by private sector operators," he said.

Mr Azeem described as a tricky, initiative the decision to use the value of vehicles registered to assess and collect income tax and asked why the selection of only vehicle purchases when other more alternatives existed such as houses and ostentatious funerals.

On external financing, he said 93Ghana has decided to exit Poverty Reduction and Growth Facility of the IMF and the use of the Fund's financial resources.

=93In one breadth the Minister gives this welcome news, in another breadth he states we intend to take advantage of the Fund's Policy Support Instrument to seek ongoing IMF advice and endorsement of our economic policies in order to provide positive signals to our developmental partners and the global economy.=94