2012 Budget, Parlaiment Should Consider Debt Ceiling

.... And An Interim Techinical Economic Management Team

The Progressive Nationalist Forum (PNF) as a prelude to the 2012 government budget is suggesting that in considering the budget, parliament should as a matter of urgency consider a debt ceiling for government and institute an Interim technical Economic Management Team (ITEMT. Our demand is predicated on the high expenditure of the current administration which stands at an estimated GHC32.6b and the corresponding evidence of development or the lack of it.

The IMF world economic outlook fact sheet (http://world-economic-outlook.findthebest.com/1/6977/ghana) indicates that the current government from 2009-2011 has spent GHC 32.6b. Whilst we are not against spending prudently, we are against profligate expenditure that benefits only a few. The question therefore is what has Ghana got to show for the 32.6b Prof Mills has spent in three years? The record we have, so far show a sod cutting for STX, sod cutting for Volta and Brong Ahafo Universities, a capote action year where the Kotokraba market was to be built, the cape coast stadium was to be built, a collapsed NHIS, collapsed maternal care, metro mass, gas shortages, water shortages, increased road accidents as a result of bad roads, labour unrest everywhere.

President Mills and the NDC are spending Ghana into HIPC and it is estimated that at the current rate of spending and borrowing by 2013, Ghana will have been fully back to HIPC. Indeed the recent Standards & Poor downgrading of Ghana to B and the associated reasons given for such a downgrade, the warnings of the Institute of Economic Affairs (IEA) and the Institute of Statistical, Social and Economic Research (ISSER) that Ghana is heading back to HIPC is an attestation of the economic bankruptcy of President Mills. A government that has borrowed $14b in three years and spent GHC32.6B yet has nothing to show for it, can only be a leach fleecing the people.

The constant reference of Prof Mills and his government to various macroeconomic indicators as signs of growth must be taken with a pinch of salt. It is on record that Prof Mills as the head of the economic management team whilst Vice President together with Mr Amissah Arthur, the governor of the bank of Ghana, then deputy minister of Finance and Dr Kwabena Dufour our Finance Minister then governor of bank of Ghana in 1998 concocted figures that led to Ghana being fined $ 20m. It is not strange to us therefore, that with the three at the helm of affairs, Ghana in its 3rd quarter for this year concocted figures of 36% and were forced to review that downward to 16%. The deceit must stop and Ghanaians must be told the bare truth so we can tighten our belts well.

DEMANDS

To curb the dangerous economic path Ghana is travelling on PNF is requesting the following from the President, Parliament of the republic of Ghana and the NDC party.

1. That both sides of parliament through a bi-partisan approach should seriously consider a debt ceiling for Ghana. This ceiling should be based on the GDP of the country and can only be revised upwards if the GDP increases or when government sufficiently convinces parliament that there is the need to exceed this ceiling.

2. President Mills and Parliament should consider putting a team of technical none-partisan experts together to steer the economy away from HIPC and get it back on track. Ghanaians have lost confidence in the economic team of the President.

3. President Mills should reduce the number of party activist and Presidential staffers fleecing this country of our resources and channel such monies into poverty reducing programmes.

4. A publication of the full list of party activist parading as presidential staffers, special assistants, communicators, ministers and their deputies and their corresponding salaries for all Ghanaians to know. We also demand their job descriptions and location of their offices so we can follow up to ensure value for money.

5. Last but not least we are demanding full disclosure and explanation from the party hierarchy of the NDC as to how a party which 3years ago in opposition was unable to pay its rent for a three bedroom party office, can in less than 3years put up a gargantuan party headquarters at an estimated $20m.

God bless Ghana

Richard Nyamah (Spokeperson) 0246-833-616

Fred Amankwah-Sarfo (General Secretary) 0555-331-324