A Deputy Minister of Finance and Economic Planning Dr. John Ampontuah Kumah has reaffirmed the Finance Minister’s comments that the corner had been turned and the Minority are disappointed in not hearing that Ghana is in difficulties in their contribution on the Mid-year-budget review.
“I am here to disappoint them the more because every information that was provided in the mid-year budget review confirm that indeed we have turned the corner; the finance Minister was here and did not request for supplementary budget”.
In his contribution to the debate on the floor of the House on Tuesday, August 1, 2023, he pointed out that the Finance Minister gave them the indication that the economic performance is promising having achieved some gains which give Ghana hope and confidence that steps are being taken leading Ghana to restoration of microeconomic stability and faster recovery in the economy; and that is the Minority’s disappointment. But that is a good news for our country. The finance Minister was here to talk to us about debt restructuring and how we have done so far and that indeed is turning on the corner.
Reducing our growth rate from 2.8 percent to 1.5 percent; we are still looking at growth strategies that would increase performance, he stated.
“let me give some statics of the growth we have projected downwards to one percent the reality is that in the first quarter of this year in this same mid-year budget as announced by the Ghana statistical service Ghana’s economy grew by 4 percent”.
Again, the fact that under the fund project of the IMF we are required to do fiscal consolidation and contraction to one point five percent does not mean we are not going to grow. We have a number of growth measures outside the fiscal space in the private sector in partnership with our development partners to grow the economy.
The basis is that the Finance Minister took it from December 2022 when we all knew Ghana was facing difficult financial situation in that month, if you compare it to where we are today then indeed we have turn the corner.
On inflation we jump up to fifty four percent; today it has dropped to forty –two percent. It is not the level that we expect, but in the midst of the global hike and inflation we are struggling to turn the situation this reflected in the goods and services of the country; fuel prices jump, but now they have dropped that indeed is turning the corner. The Minority know that is why they are disappointed..
On exchange rate in December 2022 our friends knew it was fifteen cedis to a dollar, when we say we have turned the corner, it means we have been able to turn the difficult situation. Today it’s ten to eleven to the dollar, they are disappointed about the good story the Ghanaian economy has turned around.
Interest rate Treasure Bills rate was about thirty- five percent as we speak today it has dropped to twenty- three. it’s still not at a level we wanted, you agree that we have turned the corner and you cannot say it’s not true.
Dr. Kumah further pointed out that in 2016 we had electricity load shading and the Minority should not bring it in their argument, even in the difficulties of COVID-19, Russia and Ukraine war, that is what the Minority does not want to hear, he teased.