Business News of Tuesday, 4 November 2003
Source: GNA
Economy is on track, but ...
Accra, Nov. 4, GNA- The Minister of Finance and Economic Planning, Mr Yaw Osafo-Maafo, on Tuesday said the strengthened revenue performance this year would improve the fiscal outlook for 2004 and the medium term. He said this should allow for the country's expenditure, as envisaged in the Ghana Poverty Reduction Strategy (GPRS) to be met in full, while adhering to the GPRS target path for domestic debt collection.
Mr Osafo-Maafo said this when he presented a Review of the Economic Policy of the Government for the 2003 financial year to Parliament and asked the House to approve the supplementary appropriation of 909.2 billion cedis.
He said: "We have come a long way. So far, we are on the right track, however, we need not to be complacent, as we stand the risk of weakening the strong underlying fiscal base that we have built". The Minister said the most important challenge that the country faces in the months ahead would be how to contain the growing agitation for salary increases and better conditions of service.
"Government recognizes and acknowledges the legitimate demand by workers for better conditions of service, but the truth is that all cannot be done at one go. There is the need to properly sequence the implementation of our policy", he added.
Mr Osafo-Maafo said the government does not want to destroy the credibility of the fiscal assumptions in the budget and will continue to press home the strong conviction not to sacrifice and destroy the strength of the economy for political expediency, especially with the favourable sovereign credit rating that the country enjoys. He said the Ministry will continue to monitor the Public Sector wage Bill on a monthly basis.
"We are convinced that the revisions to the 2003 budget will strike an appropriate balance between maintaining downward pressure on inflation and protecting Ghana's poverty reduction and growth objectives".
Mr Osafo-Maafo asked the House to endorse the overall economic performance and the outlook for the rest of the year, and approve the supplementary appropriation of 909.2 billion cedis as earlier laid in conformity with Article 179 (8) of the Constitution and Standing Order 143 of the House.
