The Minority in Parliament has said Ghanaians may experience severe hardship in 2018 akin to that which occurred in 1983, if government continues with the current path it has taken in its management of the economy.
Speaking at a round-table discussion to assess the economy ahead of the 2017 budget statement to be delivered on Wednesday, Minority Spokesperson on Finance, Cassiel Ato Forson, said figures from the International Monetary Fund (IMF), points to this fact, and might come to pass if nothing is done to forestall it.
“How can you create jobs under severe austerity under fiscal consolidation? The budget deficit in IMF article 4 is projected to be 3.8, so ladies and gentlemen, next year, let us be assured that there will be severe austerity equivalent to 1983. How can you create jobs when you have mandated the central bank to pursue tight monetary policy? How can you create jobs when the real sector, the non-oil GDP, is projected to grow in 2018 almost at the same level as 2016?”
“We believe that unfortunately, government’s economic policy for 2018 will bring about severe hardship and Ghanaians must be well informed,” he added.
The Minister of Finance, Ken Ofori-Atta, is expected to present to Parliament the 2018 budget on Wednesday.
President Nana Addo Dankwa Akufo-Addo, had revealed that the 2018 budget statement and fiscal policy will focus largely on job creation and also announce a downward review of electricity tariffs.
But even before the budget is read, the Minority has warned against any “419” budget, and further chastised government’s management of the economy citing the country’s rising public debt stock as a situation that can take Ghana back to HIPC [heavily indebted poor countries] by the end of 2019.
Cassiel Ato Forson, also said contrary to what the governing New Patriotic Party (NPP) promised Ghanaians while in opposition, they have done virtually nothing to keep to their promise of holding the country’s debt stock in check.
“When the Energy Bond and the UT/Capital Bank bond is added, the Debt-to-GDP will rise to 76.8 percent from 72.5 [inherited from the previous government]. Ghana is heading towards HIPC. Ladies and gentlemen don’t be surprised if, by the end of 2019, we are declared HIPC,” Ato Forson who is also the Member of Parliament for the Ajumako-Enyan-Esiam constituency added.
Ato Forson further warned the government to desist from its intention to tax mobile money transactions as it would hit the country’s many poor folks the hardest.
“Ghanaians expect a reduction in the corporate income tax rate from 25 percent to 20% to be included in the 2018 budget statement. It is our expectation that government will follow through with the firm promise that they made and we hope that we are not going to see another 419 budget,” the Minority spokesperson on Finance added.
About ‘83 famine in Ghana
Ghana experienced severe famine especially in 1983 resulting from a combination of events – natural, human and political—which occurred over a two-year period.
The famine which began in 1982 continued until the end of 1983.
In its 1983 Budget, the PNDC moved Ghana away from Kwame Nkrumah’s socialist economic philosophy towards Busia and Danquah’s capitalist free market philosophy that the government railed so much against at its inception.
The PNDC proceeded to implement an IMF supported Structural Adjustment Programme (SAP). A major plank of the SAP was the rehabilitation and provision of physical infrastructure to help improve productivity.
The economy responded positively and output increased. GDP growth, which was negative and declining in the three years before the SAP, recorded a remarkable recovery to register an average of some 5.0 percent per annum between 1984 and 1991.
Macroeconomic stability was also restored between 1984 and 1991 and the stability was not attained at the expense of growth. Inflation declined from some 122 percent in 1983 to 10.0 percent by 1991 reflecting fiscal discipline.
Source: citinews
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CC Honorable Cassiel Ato Forson was born on August 5, 1978 at Sekondi, Ajumako-Besease in the Western Region. So in 1983 he was 5yrs. So you see the lies of NDC when they talk. Shame on you when in the 1983 you were a 5-year-old.
the problem with ndc is one of two... - either they are really deluded and honestly believe that they governed Ghana so well when they had the opportunity (clearly some 5,700,000 ghanaians disagreed) - or they really believe know they were incompetent but think a large chunk of Ghanaians are ***barred word*** enough to believe them when they speak whichever it is does not augur well for them. they were arrogant, insensitive, incompetent and dissipated our resources with total disregard to humanity and posperity...a lack of GODLINESS in their thinking and approach to governance and very soon hopefully we shall learn of the level of insanity Ghana sunk to with regard to corruption
Prophet of doom these people always dream evil NDC shell never come near the seat of government
ATO FORSON HOW OLD WERE YOU IN 1983, THAT YOU HAD TO MAKE REFERENCE OF THAT YEAR WHEN POSSIBLY YOU EITHER NOT BORN OR A TODDLER BEING UNDERGOING BREASFEEDING. IN ANY CASE WHO OR WHICH GOVERNMENT CAUSED THOSE HARDSHIPS, YOUR GOVERNMENT WHICH YOU DON'T BELIEVE IN IT'S IDEALOGY. ALL (ATO FORSON,FIFI KWATEY AND THE LIKES) THOSE WHO SPOKE AT YOUR PRESS CONFERENCE WERE ALL KIDS AT THAT TIME, THAT'S WHY YOU GUYS CAN'T MAKE ANY IMPACT WITH SEVERAL PRESS CONFERENCES. SPARE OUR EARS BECAUSE GHANAIANS ARE TIRED OF THE OPPOSITION NDC
1983 hunger was in PNDC/NDC era. Nothing good shall ever come from these people and they are not ashamed of this reference. God have mercy upon them.
Sadly, this has been the bane of Ghanaian politics. The opposition is always praying for the failure of the government in power so they can also come and chop. Instead of telling Ghanaians how they will make our lives better when voted into power, the irresponsible NDC is out there cursing the country. It saddens my heart when non entities like this guy take Ghanaians for granted. Why won't we be in our current situation if we had these irresponsible guys manage out economy for 8 years?
how old were you in 1983? ooh Shaddup!
AT TIMES I WONDER IF AFRICA IS RIPE FOR DEMOCRACY. YOU ALLOWED MAHAMA TO RECKLESSLY DISSIPATE OUR RESOURCES AS IF THERE WAS NO TOMORROW AND WHAT ARE WE HEARING. BECAUSE OF A BAG OF RICE, OFFICIAL BUNGALOW, BENZ CAR BUT NOW V8 AND CORRUPTION,OPPORTUNITY TO RECEIVE BRIBES, EDUCATED PEOPLE SELL THEIR CONSCIENCE FOR PITTANCE. IMAGINE WHAT THIS GUY IS SAYING.
ed10tic ed10t. prophet of doom. what hardship havent we survived under your corr.upt 8 year rule. dont worry mr fake prophet, Our Good is in control and his ple will not suffer.
The most annoying part of this Ato Firdon is he is now doing his masters and he doesn't evenvknow if he will pass. I'm praying hard to GOD so he will fail in his last exams and since ndc is no more in power to sweep his failure under the carpet we will all know how tiwii he is . He doesnt know his party is irrelevant and they are behaving like a dying horse in a denial which is screaming and making unnecessary noise.