Business News of Thursday, 19 July 2012

Source: myjoyonline

Gov’t beats chest over economy

Government is beating its chest for what it calls significant improvements in the living conditions of Ghanaians.

Presenting a Supplementary budget to Parliament, the Minister for Finance and Economic Planning, Dr Kwabena Duffuor said, “under the dynamic leadership of His Excellency, President John Evans Atta Mills Ghana attained the highest GDP growth in the world in 2011.”

“We have improved the welfare of Ghanaians through increased real incomes, reduction in tax burden, and implementation of numerous social intervention programmes among others.

“We have created the conducive environment for private sector development and growth. We have also pursued policies that have made credit available to the private sector. These have resulted in increased investor and consumer confidence in our economy.

“… the confidence that the international institutions and investor community now have in the country's economy is higher than ever before. This has manifested in high preference for our three and five year bonds that are now selling at a premium.

“Madam Speaker, the past three years has witnessed significant improvement in the life of Ghanaians as a result of the macroeconomic stability, robust growth and improved public safety,” he sung and received cheers, jeers and boos in equal measure.

Justifying the request for the over GH¢2.6 billion extra money, Dr Duffuor said the government had been forced to revise its revenues and expenditure estimates, resulting in cash deficits of “GH¢4,669.0 million, equivalent to 6.7 percent of GDP, compared with the main 2012 Budget Estimate of GH¢3,369.0 million, or 4.8 percent of GDP,” necessitating the request for the additional amount.

According to him, the “Total amount that is, therefore, required to finance the revised budget deficit is GH¢1,300.16 million, of which foreign financing is estimated at GH¢205.50 million and domestic financing at GH?1,094.66 million.”