Reactions to the 2007 Budget

The Coordinator, Centre for Budget Advocacy, Mr. Vitus Azeem has said although there has been increases in Gross Domestic Product (GDP) growth rates and macro-economic stability, they do not in themselves translate into improved livelihood of the ordinary Ghanaian especially where there was no market for their increased production and access to increased quality education and health care.

Mr. Azeem made this assertion when his outfit reacted to the 2007 budget statement on Friday.

He said there was an improvement in the fiscal deficit, which reduced from 6.7% of GDP in 2002 to 2.3% of GDP in 2005, it must be noted that the fiscal deficit as at September 2006 was 4.4% an indication of a worsening situation.

On the enhance salary structure, Mr. Azeem said the wage bill of ¢13.2 trillion announced for the year 2007 might not be enough to provide the comprehensive and enhanced salary that government had promised therefore workers should not be enthusiastic to avoid disappointment.

He said the budget was overloaded with proposed road construction projects some of which had been on the statements since 2001 but one would have expected a 'Jubilee Budget' to perform the act of cleaning up and proposing to mob up all ongoing projects.

Mr. Azeem said government appeared to be distancing itself from its role of providing affordable housing to the people since the issue has featured in the budget since 2004.

He said little was achieved in that regard and the fact still remained that the ordinary Ghanaian could not access loan from commercial financial institutions.

The focus on the private sector by government, he said was too much and such rigid stance must be reviewed.

Mr. Azeem described as a tricky, initiative the decision to use the value of vehicles registered to assess and collect income tax and asked why the selection of only vehicle purchases when other more alternatives existed such as houses and ostentatious funerals.

On external financing, he said Ghana has decided to exit Poverty Reduction and Growth Facility of the IMF and the use of the Fund's financial resources.

"In one breadth the Minister gives this welcome news, in another breadth he states we intend to take advantage of the Fund's Policy Support Instrument to seek ongoing IMF advice and endorsement of our economic policies in order to provide positive signals to our developmental partners and the global economy," he said.

Dr. Nii Moi Thompson, an economist challenged the basis for arriving at certain macroeconomic indicators of the country, saying there existed internal inconsistencies, which must be explained. The press briefing was organised by the Integrated Social Development Centre (ISODEC).