News:
October 3, 2013
Minority in Parliament has advised government as well as the Finance Ministry to find pragmatic measures in confronting the economic challenges facing the country.
This followed a briefing by the Finance Minister about the performance of the economy ahead of the 2014 budget statement.
At a press conference, Wednesday, Minister of Finance and Economic Planning, Seth Terkper, indicated that the country is facing economic challenges because there is not enough money. He said between January and August 2013, the country recorded over GHC11 billion from revenue and grants but over 70% of the money went into payment of public sector workers leaving very little to finance capital projects.
He also admitted that government is having “moderate debt distress” and that is leading to donor partners unwillingness to release grants as expected.
But speaking on PEACE FM (‘Kokrokoo’) Morning Show, Member of Parliament (MP) for New Juabeng South, Dr Assibey Yeboah said it is not surprising that donor partners are not bringing in the funds as expected because the money being received from them is not being used appropriately.
He described the Finance Minister’s remarks that the ballooning wage bill is cause of the country’s economic challenges as unacceptable; adding it will be better to stop giving excuses and find solutions.
Hon. Assibey who is also a member of the Finance Committee of Parliament advised government to cut waste in terms of overspending and widen the tax net.
“The serious issue government should confront is that there is too much borrowing leading to unsustainable economic system. Last year we incurred a budget deficit of 12% of GDP… if we are always incurring debts, it will be difficult to issue payments.
They should also cut their spending and thirdly, take steps to bring a lot of people into the tax net since only a few people pay tax in the country,” he indicated.
Peacefmonline.com