Asaga criticises government's mid-year review

Minority Spokesman on Finance, Mr Moses Asaga, MP has described the government's mid-year review of the budget and economic policy as a statement composed of mixed figures that lacked consistency.

Opening a debate on the review in Parliament, Mr Asaga said some figures represented that of June while others were as at August ending and September and thus made it difficult for financial analysts to come out with detailed and critical analysis. He said the presentation "lacked professionalism"

"The Minister of Finance promised the whole nation a final budget after June, but he comes to present a mid-year review contrary to the expectation of Parliament and the good people of Ghana.

The Minister refused to account for a GDP growth because he knew that the economic growth was dismal and insignificant. "A key performance indicator such as GDP growth which is fundamental to determine the health of the economy was hidden from Ghanaians."

Mr Asaga described the government's total expenditure of 1.4 per cent as woeful and dangerous, adding, "for the economy to grow at the projected 4 per cent you need to spend not less than 20 per cent of your budget on investment".

He said 1.4 per cent of capital expenditure was spent on the renovation of the Castle and the purchase of a fleet of cars for the government appointees and Ministers. A number of economic targets were not achieved in the first half of the year. The balance of payment surplus turned out to be deficit and arrears of 290 billion cedis owned to road contractors were not paid while out of the projected divestiture proceeds of 391 billion cedis for the year only 28 billion cedis was realised.

Mr Asaga said it was not true that government domestic borrowing was only 602 billion cedis. It was rather 27 trillion cedis in August. To him, the stability of the cedi was artificial because government was not spending.

"The main theme of the budget which is filling the financing gap is of suspect. The Minister refused to give the sources of resources to fill the gap. About 80 per cent of the gap filling is from programme and project loans which are pipe-line promises." He thus called on the Minister to give the break down of the sources of financing the gap.