Business News of 2014-03-28

Government struggles to cut spending

Vice President Kwesi Amissah-Arthur says Government’s consideration for the vulnerable in the country under the current tax reforms has not been able to yield the desired results.

Speaking on Wednesday in Accra when a delegation from the Steering Committee of the Ghana-US Partnership for Growth called on him at the Flagstaff, he said Government was however pursuing a number of reforms to curtail public spending for the necessary savings to finance infrastructure development and attract investment.

The delegation was led by Pat Alsup, Deputy Chief of Mission of the United States Embassy in Accra.

He also said the international economic system had not worked in favour of Ghana’s economy, especially for her commodity prices.

The Vice President explained that the path of adjustment that was being pursued by Government had not yielded quick results.

Additionally, Government was looking for efficiency in its spending. This will call for a stable and predictable wage bill as well as selecting and prioritizing projects to attract the needed investment, he indicated.

He called on the Central Bank to introduce further measures to stabilize the local currency.

The meeting sought to assess Ghana’s readiness for the second compact of the Millennium Challenge Compact.

Meanwhile, a board meeting is scheduled for the US in May for possible disbursement of the funds in August.

The Ghana US-Partnership for Growth forms part of US Government’s Partnership for Growth to support the financing of identifiable projects for poverty alleviation in countries including Ghana, Tanzania and El Salvador.

However, Ms Alsup said there were few areas that needed to be worked on seriously in order to produce the expected results.