NPP Left Behind Unprecedented Fiscal Deficit-- Finance Minister

The Minister of Finance and Economic Planning, Dr. Kwabena Duffuor, claims prudent economic management by the President Mills� administration has led to some significant gains and the possible realization of drastically reducing the budget deficit in 2009.

According to him, the economy was saddled with huge fiscal deficits and unpaid bills unparalleled in the annals of the country�s economy, when the National Democratic Congress (NDC) assumed power. He revealed that the situation nearly stifled growth, but the government re-strategized and has almost succeeded in turning things around.

�Fiscal deficit (expenditure exceeding revenue) alone stood at GH�2.6billion when the New Patriotic Party (NPP) left office in 2008. By September, he continued, arrears and unpaid bills amounted to some GH� 1.7 billion�Never in the country�s history have we faced such a huge fiscal deficit in proportion to GDP,� Dr. Duffuor said on the floor of Parliament today.

He was submitting government�s 2010 Budget Statement and Economic Policy

The Finance Minister also announced plans by government to bring sanity into the country�s tax system by the introduction of an austere but unique tax scheme.

�To modernize the Ghana tax system and enhance revenue administration, the management of the three (3) revenue agencies, namely the Valued Added Tax (VAT), the Customs Excise and Preventive Service (CEPS) and the Internal Revenue Service (IRS), will be brought under the umbrella of a single Ghana Revenue Authority (GRA) in 2010 as part of the E-Ghana Project. Already, cabinet has given its approval of the setting up of the GRA,� he disclosed.

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Source: Kwadwo Asante/Peacefmonline