The Minority Spokesman on Finance, Moses Asaga has said that the New Patriotic Party government has mismanaged the economy, making Ghanaians poorer than ever.
"Our financial situation is very serious. I mean it is worse than ever. The economy is now fragile. The other blow is the International Monetary Fund (IMF) has suspended its programme with government."
Asaga, who survived a road accident recently, was reacting to the mid- year review of the 2002 budget presented by Yaw Osafo Maafo. He told the parliamentary press corps that, "government has failed to meet all the targets it set for itself, World Bank (WB) and the IMF."
He said Ghanaians are reeling under the pressures of high electricity and water tariffs, high school fees, a broken down yet expensive health care, which is not friendly to pensioners, the aged and the disadvantaged and massive unemployment.
"I want to repeat that going HIPC was a mistake. This government has refused to consult experienced people, people who have managed the economy before." Asaga said the over-performance of the tax administration is ironically a death trap for the private sector because it was over taxed.
The member said government over borrowed from the domestic market. "Government over-borrowed 1.7 trillion cedis from the domestic market. The NPP once criticised the NDC government for over-borrowing 900bn cedis even though we told them that 600bn cedis was used for oil imports."
He said: "The crowding-out effect would tell on the private sector. They would have nothing to borrow. Government's action contradicted its belief-golden age of business."
Asaga said the events surrounding the IFC loan have jeopardized relationship between government and the WB and IMF. "The IFC loan is turning out to be scam. Everything about it is not transparent."
He said the Minority "was unhappy about the way government was managing the economy,'' adding, "even that this stage, the economy is sixty-seventy per cent donor driven."
Members are expected to start contributing to the statement on the Mid-year review on Wednesday. The Minority has criticised the Finance Minister for opting to make a statement rather that coming through a motion. Statements are not binding whereas motions are concluded by a vote for adoption or otherwise.
