‘The adhoc economic measures need to be debated’

Dr Tweneboah Senzu, Research Professor of Market Economics Studies at TUA University and Senior fellow of Bastiat Ghana Institute, on Wednesday disagreed with the Finance Minister about his views about the depreciation of the cedi.

He said Mr Seth Terkper’s assertion that the public debt portfolio stands at GH? 89 billion and therefore requires the feed into the economy dollars to sustain the cedis strength to reduce the debt figures is ambiguous.

A statement issued by Bastiat Ghana , a liberal economy think-tank in Accra on Wednesday, he said if Ghana has a loan to be paid in 20 years, what happens when the availability of dollars to sustain the economy is no more in the next two or three years?.

“Won’t the cedi depreciate again to cause escalation to the debt portfolio figures? Such assertion may have economic validity per the play of figures but not influence the current situation so much as assumed,” it said.

“We are already facing the shocks and pray that the economic managers take sustainable decisions and actions to fix the problems once.

“Some of the initiatives should consider pragmatic actions needed to end or reduce borrowing as soon as possible and focus in building a labour market 99 per cent efficient in the utilisation of funds invested in the economic market.

“Economic managers usually complain of their inability to meet their revenue collection targets, and has government considered the role to play efficiently to cause enough revenue collection?”

The statement said some school of thought in the economic fraternity in Ghana argued that public funds management are complex therefore the situation must be accepted because most of these loans are channel into social intervention programme.

“Was the fund received by government as a gift or a loan? The essence of a loan is to use it for production and get a return and pay back with some interest. So to use it for social intervention or not, the question is; will that social intervention generate enough fund for government to pay the loan and its interest within the stipulated period to avoid the economic management formula of robbing Peter to pay Paul which has a long term consequences?”

It said the tremendous impact of the capital market on the macro-economy of Ghana depends on the authority the labour market have on productivity and effective and efficient use of the cedi in the economy.

The statement said: “We are paying for all this shocks due to lack of political management and the will of government to control a lot of waste in the economy. Free money for funerals programmes, parties and all kind of free expenditure to buy vote is the cause of the present tears in the hardship found in our house hold.”