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Dr. Ato Forson, Ranking Member on the Committee of Finance has charged government to refence the pensioner in its debt restructuring strategy, and promised fierce resistance from the Minority towards it if it is brought to parliament.

Mr. Ato Forson who was contributing to debate on the 2023 budget Statement and Economic Policy of government on Tuesday said the Finance Minister in presenting the Budget statement created the impression that he was going to engage stakeholders particularly international bondholders, domestic bondholders and the Ghanaian public on the matter of debt exchange (debt restructuring).

However, not long after the presentation, one of the deputy Ministers of Finance, John Kumah announced that the government of Ghana is going to do debt restructuring for domestic bondholders in terms of interest, which implies domestic bondholders will receive zero interest in 2023. In the year 2024, they will get 5 percent of their interest and in 2025 they will get 10 percent of their interest; and going forward they will extend the tenure by 10 years.

According to him, he is surprised that this arrangement is being implemented at the time inflation is in excess of 40 percent; “how do you expect a bondholder not to get interest?”

He accused government of introducing financial repression in the economy and the impact on this is severe.

“Mr. Speaker, can you imagine when a pensioner using his lifetime pension has invested in government bonds and he is only surviving on the coupons, interests that he gets, only for the Ministry of Finance to all of a sudden announce to us that in the year 2023 they are not going to pay interest. Mr. Speaker, how do you expect that pensioner to survive?” and questioned how those pensioners will pay their hospital bills.

“We cannot allow the pensioner to pay for your mismanagement particularly the vulnerable people, Mr. Speaker, that we’ll resist it”.

He cautioned that foreign bondholders are not necessarily foreigners, “they are Ghanaian banks, Ghanaian institutions and Ghanaian businesses that have bought Ghana’s Euro bonds and so if you are treating them, treat them well and be mindful that whatever happens in terms of the ‘haircut’ is going to affect the economy also going forward.

He warned that banks will struggle under this arrangement, businesses will go down, and the repercussions if care is not taken will affect all of us.

Dominic Shirimori/Ghanamps.com

A deputy Minister of Finance, Abena Asare has called on the Minority Caucus to support government take the country out of its current economic challenges by helping to pass the 2023 Budget Statement and Economic Policy of Government as presented to Parliament by the Finance Minister, Ken Ofori-Atta.

Madam Asare who was contributing on the first day of debate on the 2023 Budget Statement and Economic Policy of Government said the quicker the House is able to pass the budget, the better for the country.

She said Ghana’s economic situation is worrying as the country has no access to the international capital market, and with our currency depreciating by almost 54 percent.

“The quicker we do something about it, the better. And it is in this region, or it is in this light that we are asking our colleagues on the other side to support government with the revenue measures that we have stated in paragraph 212 – 222 of this year’s budget.

Mr. Speaker, we cannot keep the ball down the road because every delay that we delay in passing out this revenue measure means we are pushing Ghana down the drain. As it stands now, our tax revenue to GDP ratio is 11 percent way below that of our peers which is around 18 percent, Mr. Speaker; so clearly, we need to do something about it; we need to raise more revenue to help us push the development agenda and also to stabilize the economy and make things better for our citizenry”.

She is hopeful the reform measures put forward by the Ghana Revenue Authority (GRA); both administrative and some in technology driven would help increase our tax to GDP ratio to about 18 percent in the medium term and also improve on the way we collect our taxes.

She said measures to make tax collection more efficient are not the only way to improve revenue hence the need to raise some form of taxes to support our fiscal consolidation. That is why is important for the Minority to support the tax measures.

She debunked Dr. Ato Forson’s accession that VAT is currently 21 percent stating that it is rather 12.5 percent, and “government is hoping that the 2.5 percent increase would be passed to help raise 2.7 billion Ghana cedis for development.

She described the VAT as the more sustained way of collecting revenue as it has benefited successive governments under the fourth Republic.

She appealed that we have moved beyond the 1995 events of the VAT, and that both sides of the House should see consider the 2.5 percent increase in VAT devoid of any partisan consideration to make sure we move revenue up for our nation.

Dominic Shirimori/Ghanamps.com

The Ranking Member on the Committee of Finance, Ato Forson has chastised government for not demonstrating and leaving by its own policy suggestion of moving Ghana’s economy from taxation to production.

Contributing to the debate on the 2023 Budget Statement and Economic Policy of government on Tuesday, November 29, 2022, Mr. Ato Forson said government per the 2023 budget statement is rather moving from taxation to more taxation.

He accused government of not being consistent and meticulous with its policy measures, stating that the government is treating its tax policy as though it was a sock they can put on and remove at will.

He said government has introduced 23 tax measures. “Mr. Speaker this is a government that treats policy like socks; policy is not socks for you to put it on and take it out when you want. I’m begging you, if you want to introduce tax policy, you think about it, you do proper analysis before you make a position. You don’t introduce tax policy and 12 months down the line you bring it back. Mr. Speaker, that is really something that we should question the competence of the people that are making this decision. The mismanagement is so clear”.

He also asserts that there is a 2.5 increase in VAT. “Mr. Speaker, you agree with me that 2.5 percent VAT means that our VAT rate would be 21 percent. Simple put Mr. Speaker; we already have five percent VAT made up of GETFund and NHIL. Mr. Speaker, we have one percent VAT on COVID Levy already; if you are to add all of them Ghana’s VAT would be 21 percent statutory rate”

He explained further that this is different from the effective rate which would be about 22 percent, adding that it is the worst in Africa, and that no country in the entire Africa has VAT rate in excess of 20 percent.

He contend that the VAT increase is coming at a time that inflation has gone up percentage change almost 300 percent, from 13 percent to 44 percent and still climbing up.

He thus advised that the tax measures are not the solution to the getting the country out of the economic difficulty. “This tax policy must not be countenance. This tax policy must be thoroughly debated, scrutinized before a decision is would be made on it”.

Mr. Ato Forson hinted that the Minority would make a position on the tax policy in due course, adding that they believe this is not the time to heap more taxes on the ordinary Ghanaians at the time that prices of goods and services have gone up by 300 percent, “it should not be allowed”, he emphasized.

The ranking Member on the Finance Committee was also not happy about the scrapping of the 100 Ghana Cedis threshold for the E-Levy, and contend that it would affect the poor who initially government argued would be protected.

He assured that when it comes to the scraping of the 100 Ghana cedis thresholds for the E-Levy, the Minority would fight it with all their strength and might to protect the poor.

He said the quest by government to also increase the upper limit of personal income tax to 35 percent, when it goes through the income tax would go up. He reminded the House that the government brought this same tax some time ago and within 8 months scrapped it off, now it is back”. Other taxes include reversal of bench mark value, he added.

Dominic Shirimori/Ghanamps.com

The place of teachers in educating, training, and instilling discipline in children for a better future cannot be overemphasized, and that is why it is always in place to appreciate their contributions at all times.

It is in view of this that the Member of Parliament for Sissala East, Issahaku Chinnia Amidu knowing the relevance of teachers in the educational process is instituting teachers award scheme to appreciate and motivate hardworking teachers to give off their utmost best for the betterment of child development in the area.

The MP who expressed hope that by close of the year the event would take place said the process is ongoing with the help of the directorate of the Ghana Education Service.

The award scheme however, is just one aspect of interventions the MP is involved in to uplift education in the constituency.

While he supported the renovation of the education directorate, other assistance including purchase of car tires were also made to allow for easy movement for monitoring and other administrative works.

A number of infrastructure developments also sprung up. Through his community assisted programme, two schools have been built at Tanvelle, and Katenia, while additional two are in the process to be constructed. Furniture was also provided and distributed to schools.

In all these, the main objective of ensuring improvement in their result of the asic Education Certificate Examination in the area was not lost on him, As such some attention was also given directly to the students.

Mr. Amidu supported the orientation of BECE candidates to adequately prepare them for their examinations to ensure they do not fumble when confronted with the examinations.

Dominic Shirimori/Ghanamps.com

The Member of Parliament for Nkawkaw has initiated a move to brighten the principal streets of the municipality.
Currently, about 500 pieces of led streetlights are being fixed throughout the principal streets of the municipality and is hoped to be completed by close of this month.

The MP is being proactive to ensure the safety of the constituents particularly at night hence ensuring that there is good visibility in the municipal capital, particularly so when the Christmas season is just around the corner.

To ensure the entire constituency benefits from the project, the MP earlier distributed about 800 pieces of streetlights to individuals and assembly members, hence the new development is also to augment the good initiative he started.

Meanwhile, Mr. Joseph Frempong also facilitated the provision and fixing of Solar lights in 10 rural communities including Atawase, Asempaneye No1 to No6, Yawkrom, Boadukrom and Yaasekrom.

Ghanamps.com

The Member of Parliament for Akim Oda Constituency in the Eastern Region Alexander Akwasi Acquah has inspected ongoing works on the construction of the Akim Oda stadium.

He assured the contractor and management of all the necessary support from his office and urged them to make sure the project is completed within the stipulated time.

According to the MP, inspections would be made regularly to ensure smooth progress of the project.

The MP recently presented GHc100,000.00 to the management and team of Kotoku Royals Football Club to commence first phase of renovation works of the Akyem Oda Sports Stadium to enable the team to return from Cape Coast Sports Stadium to play on their home soil.

Ghanamps.com

Minority Leader, Haruna Iddrisu said the post budget workshop organized for Members of Parliament (MPs) is their core function of playing an oversight role and they are the institution responsible for controlling the public purse. As such if there is any mandate for parliament, MPs must consider it very essential and critical.

According to him MPs have a duty to reflect the aspiration of Ghanaians; that is ordinary Ghanaians, businesses including the private sector and to take decisions that assure them that they care about them.

He further pointed out that, the Minister has shown candor in admitting that the economy is in crises, and he can only pray that it does not get worse. We are in crises and Parliament must help government to walk out of it; how do we do it remains a question. “We all must seek answers; as we engage today on Ghana’s economy and the 2023 budget statement”.

According to him, as he listened to the Finance Minister, it is clear that government is simply broke, and the economy is in crises and under life support that needs some resuscitation and some of the measures may provide the relief that the economy needs.

He questioned how placing a cup on employment into the public and civil service, helps address the unemployment level of our country, including solving the inequalities and ratio of pupil – teachers, doctors and nurses to the Ghanaian public.

Again, “minister when you say additionally there will not be printing of diaries, calendars and other promotional merchandise, MDAs MMDAs and SOEs and then the word is for 2024 why not 2023? So those who are in the process of procuring, stop them in other to save the public purse”

The Tamale South lawmaker further emphasized that they are not against the construction of a cathedral. Ghana is a circular state and republic which guarantee freedom of faith, freedom of region, but “when you make a budgetary allocation for the construction of a national cathedral at eight million Ghana cedis, “we would ask what is the total cost of that project; how were procurement under taken to assure value for money; what is the duration of the project; how much will it cost the state and when will the project be completed?”.

He noted that these are needful answers we will ask whiles we support it. “I see finally some pledge to reduce the E-Levy; we will subject it to some critical and thorough discussion and further consultation as a caucus in order to assist government to get out of its economic crises; but urged that there should be further consultation on e-levy.

Kwaku Sakyi-Danso/Ghanamps.com

The Executive Secretary of the Presidential Advisory Committee Against Corruption (PACAC) in Nigeria, professor Sadiq Isah Radda has said fighting corruption requires the collaboration between the three arms of government; Executive, Judiciary and the Legislature in every country.

According to him countries within the African continent need to collaborate, cooperate and coordinate and speak with one voice on the fight against corruption.

“That is why we in Nigeria feel if our brothers and sisters in Ghana should be contacted so that we work together to fight corruption in Africa. We are the only people who can do it ourselves and nobody can do it for us well”, he said in an interview.

They are currently on a working visit in Ghana visiting anti-corruption institutions and can call on the Judiciary Committee in Ghana’s Parliament, he stated.

As to what can be done to address issue of Nigerians arrested in Ghana and same with Ghanaians arrested in Nigeria, he noted that, “you see not every Nigerian in Ghana that is bad so those of them that are committing one offence or the other can be subjected to the due process of the law. What we do not want is a situation where some of them are victimized.

But, anyone found of committing an offense in Ghana, Chad, Rwandan and Nigeria should be arrested and subject to the due process of the law but that does not mean every Nigerian in Ghana is an offender and every Ghanaian in Nigeria is an offender”, he emphasised.

On the issue of drug trafficking at the various airports within the sub-region and Africa, he noted that citizens need to cooperate with anti corruption agencies with good information and timely information; sea-ports and borders should be encouraged to work very well and we should also deploy technology.

Again, our religious and political leaders and opinion leaders should be good models; if we do this jointly we can achieve success.

As to what some of the challenges they face are, he noted that the kind of laws we have are different, despite there are similarity, but not exactly the same; the laws are different and poses challenges, he added.

More so, there are culture differences, and thirdly there are political differences. There are problems to do with the attitudes of the people; the people in the continent exhibit different attitudes so all these jointly pose a challenge but if we keep talking and collaborating, we can break all these barriers, he said.

Touching on whether the laws being used in fighting corruption are enough, he noted that laws improve if they are implemented fully, as one can only tell whether a law is good or bad it is implemented fully.

“So, let us get to a position where countries in Africa can implement all their laws, rules and regulations; along the line we will be able to know which part of the rules has problem but for now many of the laws are not implemented fully”.

He expressed hope that if we show commitment and implement the laws fully and with sincerity, it is only then that we can change and reform them.

Kwaku Sakyi-Danso/Ghanamps.com

The Deputy Minister for Lands and Natural Resources, responsible for Lands and Forestry, Benito Owusu-Bio says government is fully committed to ensuring that mineral deposits discovered in the Oti Region are exploited and utilised for the benefit of the people of Oti in particular, and Ghanaians in general.

The Deputy Minister made this declaration on the floor of Parliament when he was answering questions on behalf of the Sector Minister, Samuel A. Jinapor on Wednesday, 23rd, November, 2022.

Mr. Benito in his answer on steps being taken by the Ministry to operationalize mining of minerals discovered in the Oti Region, said government is still at the exploratory stage of the mining value chain of the iron ore mineral. “Currently, the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), the statutory body responsible for the promotion and development of an integrated iron and steel industry in the country, is undertaking mineral resource estimation at one of the seven blocks in the Gyamurume and Wawaso areas” He added

He continued that Satellite scans have been completed, and mapping and geophysical surveys are underway which he said is expected to be completed within a year and half, noting that so far, ten (10) people from the local community have been employed.

In addition to iron ore, he alluded that the Ghana Geological Survey Authority (GGSA) is carrying out geological investigations into limestone deposits to define and quantify their economic potential for exploitation.

He assured the House that before any serious mining activities begin in the Region, the Ministry will ensure that all the necessary measures are put in place to forestall any illegalities that will negatively impact the environment as seen elsewhere.

Still on the mining sector, Mr. Benito touted a number of measures government has put in place to mitigate the illegal mining menace, noting that these measures can also pass as progress government has made in the fight against the menace.

“Government has implemented several policies and programmes aimed at coming to grips with this canker. We declared river bodies as red zones for mining, banned reconnaissance, prospecting and/or exploration in Forest Reserves, launched Operation Halt II to rid river bodies and forest reserves of illegal mining activities, introduced speed boats and river guards to patrol and protect our river bodies, banned the manufacture, sale and/or use of the floating platform, popularly referred to as Changfan, enhanced the punishment regime for persons involved in illegal mining, revamped Community Mining Schemes and developed an Operational Manual to regulate their operations.”

Answering the questions of disposal of government Lands, he reiterates that, as has been the case in all governments under the Fourth Republic, government has disposed of some landed properties since 2017. He was however quick to add that as to the number of transactions, the beneficiaries, and value of those transactions, he will rely wholly, on previous answers given on 3rd February, 7th June, and 28th June, 2022, as captured in the Hansard for those days.

He also made it clear that when the Lands Commission, who are the repository of these information, finishes compiling the records, including those relating to previous years already requested by the House, he will furnish the House with the information.

On the question of why government issued an Executive Instrument (E.I. 144) to declassify 40% of Achimota Forest Reserve and how Lands in these Reserve area were already demarcated and sold out to individuals, the Deputy Minister gave a historic background to the matter and stressed that Achimota Forest is an integral part of Government’s plan for the protection of our forest cover and our agenda for aggressive afforestation and reforestation, and the Government of President Akufo-Addo, remains fully committed to its protection and proper management.

He therefore gave an assurance to the House that Government will act on any improper acquisition of public lands, regardless of how it was procured, whether now or in the past, and the Achimota Forest Lands will not be an exception.

Hon. Owusu-Bio stressed emphatically that Public lands are not for sale and for that matter the Akufo-Addo government has not sold lands to any institutions, groups of people or private individuals.

Speaking to the question of quantity and whereabouts of the confiscated rosewood which is said to have been donated to National Cathedral, he said as announced on 30th July 2022 by the sector Minister that all Rosewood confiscated will be donated towards the construction of the National Cathedral, “since this date, twelve point five (12.5) containers, containing an estimated wood volume of Two Hundred and Fifty cubic metres (250m3) of Rosewood, have been confiscated and donated to the National Cathedral Project and this includes the five containers impounded on 17th June, 2021 at Tema Port.

He implored the house that for security reasons, all Rosewood donated to the National Cathedral Project are stored at the Forestry Commission Depot, in Achimota, stating that as and when the Project requires wood, they will make use of these confiscated wood.

The Deputy Minister assured the House, and the good people of Ghana, that “our management of the natural resources of our country, including Rosewood, will continue to be anchored on the highest standards of transparency, integrity and candour for the benefit of the Ghanaian people, the owners of these resources”.

Ghanamps.com

The Finance Minister, Ken Ofori-Atta will today, the 24th of November, 2022 be in parliament to present the 2023 Budget Statement an Economic Policy of Government for the year ending 31st December 2023 on behalf of the President of the Republic.

This is in accordance with Article 179 of the 1992 Constitution and section 21 of the Public Financial Management Act, 2016 (Act 921).

The 2023 Budget Statement is expected to among other things;

• focus on Government’s strategies to restore and stabilize the macro economy, build resilience, and promote inclusive growth and value creation;

• provides updates on Ghana’s engagement with the IMF for an IMF-supported Programme: year-to-date macro-fiscal performance of the economy: the YouStart initiative under the Ghana CARES Programme; climate action strategies; fiscal measures and debt management strategies to ensure fiscal and debt sustainability and promote growth.

Meanwhile, the Minority Caucus in parliament has hinted that there would be increases in taxes including about 2.5 percent Value Added Tax (VAT), scrapping of exemptions on MoMo among others.

While the Minority has given its readiness to support the government to get out of this economic challenges the country is faced with, it called on the government to drastically reduce its expenditure.

Ghanamps.com