Minority Wants Portions of Budget Withdrawn

The Minority on Wednesday objected to the introduction of the National Reconstruction Levy and the country joining the Highly Indebted Poor Countries (HIPC) initiative.

It said the two policies should be deleted from the 2001 budget before Parliament will approve the government's financial policy for this year, which is currently under debate.

These were contained in a notice seeking to amend the budget and standing in the name of NDC MPs - Mr Alban Bagbin, Mr Doe Adjaho, Alhaji Muhammad Mumuni, Mr Johnson A. Nketia, Mr Steve Akorli and Mr Amos Buertey.

Mr Adjaho, Minority Chief Whip, explaining the issue to the press, said the introduction of a reconstruction levy of 15 per cent proposed in the budget is seeking retrospective effect from last year.

He said this was unconstitutional because the constitution is against retroactive policies and says that no law is to be passed with retrospective effect.

He explained that the year 2000 is passed and if that law is passed, "it will adversely affect all of us including the private sector". "And if we agree that the private sector is the engine of growth and we pass laws to stifle it of funds, how can its growth be ensured?

"One of the criticisms against the previous NDC government was that it was competing with the private sector in borrowing and has been crowding out the sector from the market."

Mr Adjaho said it is also unconstitutional to present an interim budget to Parliament because a national financial policy should span one year and nothing less.

He said Article 179 (10) states: "the President may cause to be prepared and laid before Parliament estimates of revenue and expenditure of Ghana for periods of over one year".

Mr Adjaho said, armed with that, Parliament cannot approve any budget of less than 12 months, adding: "and worst still, the budget is titled for 2001 and thus contradicts itself with its description as an interim one".

On the HIPC initiative, Mr Adjaho said the literature on it as it is in the budget is scanty and hazy.

He said the proponents of the initiative are claiming that government would be negotiating with Ghana's development partners and donors on the benefits to be derived from the initiative and asked: "How can you approve of a policy whose terms and conditions are yet to be negotiated?"

Mr Adjaho said the Minority cannot be a party to approve such a policy because "we believe that it has international economic dimensions and therefore the government must send sufficient information on the HIPC to Parliament for ratification or otherwise".