Govt urged to bring prices down

Takoradi, March 10, GNA - Participants at a public forum on the 2004 budget in Takoradi on Wednesday called on the government to ensure that prices of commodities that were raised soon after the reading of this year's budget were brought down to the original levels.

They noted with concern that prices of goods continue to escalate, thereby making life unbearable for ordinary citizens.

They said such increases in the prices of some commodities were not justified since the budget did not cause any such increases. The participants further urged the government to step up its campaign against corruption and promote good governance.

Mr Kwesi Biney, Ahanta West District Chief Executive, advised the people to uphold integrity to ensure that policies initiated by government achieve the desired impact.

He said the budget was not drawn up to win votes in the forthcoming elections but to consolidate the economic gains the government had so far chalked.

Mr Biney said the government was able to grant tax relief to some sectors because of increase in tax revenue from 4.4 trillion cedis in the year 2000 to 13.4 trillion cedis in 2003.

He said the government's fiscal policies and the prudent monetary policies of the Central Bank have led to a steady decline in interest and inflationary rates thereby creating a business friendly environment. Mr Biney said the nation's export revenue also increased from 1,867 billion dollars in 2001 to 2,297 billion dollars in 2003.

He said the 2001 budget and subsequent government policies have been difficult for the people but this year's budget was the outcome of realistic policies put in place by the government within the last three years.

Mr Biney said the last three budgets of the NPP administration sought to remove distortions in the country's fiscal policies towards stabilization and growth.

Mr Peter Mac Manu, Western and Central Regional Chairman of the Association of Ghana Industries (AGI), said Ghana could not develop by relying solely on agriculture to support the economy.

He said industries must be established to make use of raw agriculture products and that there is also the need to diversify and expand the economy.

Mr Manu was happy that the government included proposals submitted by the AGI in this year's budget, saying it marked a positive development in its effort to create a private sector led economy and industrialisation.

He urged local and foreign investors to take advantage of the favourable economic concessions granted by the government in the budget and set up viable industries to support the industrialization process. Miss Emelia Arthur, Deputy General Secretary of the National Reform Party, said the provisions of the budget were in line with the Ghana Poverty Reduction Strategy, but added that the document had all the trappings of the Structural Adjustment Programme, prescribed by the multilateral donors such as the World Bank.

She said the World Bank was always praising the NDC government for achieving economic success with the structural adjustment programme and that it was only after that government relinquished power that Ghanaians learnt about its failure.

She said what was disturbing about the GPRS was that, it is 80 per cent donor funded, adding that, a second look should be taken on it.

Mr Kofi Wayo, a politician and businessman, said deregulation of petroleum products was not feasible for the country at the moment because of lack of effective banking system to support private petroleum companies.