We're Committed to Sound Monetary Management - Minister

THE MINISTER of Finance, Mr. Yaw Osafo Maafo, has emphasized that the government is committed to work with the financial sector to ensure sound monetary management in the country.

Mr. Maafo also said "the govoernment is committed to spend only what it has or what it can reasonably expect to have."

The financial policies formulated by the government, according to the Finance Minister, have demonstrated government's determination to move the country forward.

Mr. Maafo said this in a speech read on his behalf by Dr. Amoako Tuffour, an officer at the Ministry of Finance, at a public forum organised by the Christian Council of Ghana (CCG) on the topic "2002, National budget and the HIPC Initiative - Implications and Expectations and the role of the Church in Demanding Public Accountability."

The Minister stated that the measures pursued by the government have been successful, because the rates of inflation continue to decline from 42 per cent in March 2002 to 14 per cent in June, this year.

According to Maafo, the cedi compares favourably with the currencies of the major trade partners and has remained relatively stable over the year.

The Minister stated that the government has demanded realistic prices for petroleum products and moderate prices for utilities.

He was of the view that the growth seen in bank deposits stems from public confidence, in the holding of domestic assets.

He disclosed that the government is currently restructuring the financial sector.

Accelerated achievement of financial results, according to Mr. Maafo, is contingent on fiscal discipline and good monetary management.

He told the participants that the government for the first time has established an Economic Policy Coordinating Committee to monitor the revenue and expenditure trends and advise the economic management team and cabinet.

Dr. Joe L.S. Abbey, an Executive Director of Centre for Economic Policies and Analysis (CEPA), speaking on the topic "Policy-Making and Civil Society - The Role of the Church," indicated that to formulate economic policies the focus must be on ultimate objectives, such as employment, growth and improved living standards of the populace rather than targeting inflation, exchange rate or the interest rate.