General News of 2014-01-08

‘Gov’t cannot continue to give freebies’ – Mahama

President John Mahama has said that government cannot “continue to give freebies when you don’t have the income to be able to support it.”

According to him, government is struggling with expenditure because it “supersedes our income…” therefore, it has become necessary for government to balance out its expenditure and income.

He was answering a question asked at his first meet the press at the Flagstaff House to mark his one year in office.

The questioner asked how government plans to reduce the impact of the upward adjustment of tariffs and a possible freeze on wages of public sector workers on Ghanaians.

The President explained that the decision to increase tariffs and possibly freeze wages was “not easy to take” adding that if he could give out free fuel to the general public and reduce the cost of tariffs, he would have to lighten their financial burden.

But he was quick to add that government has to make some tough decisions because Ghana “has deficit of energy” and so government has to “put in more energy generation but government does not have the investment to be able to do it; and so we have to bring in the private sector to do it” therefore, tariffs have to be adjusted.

He pointed out that “governance is a difficult business; difficult decisions need to be taken and the mark of leadership is; you take difficult decisions when they need to be taken.”

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