The Majority and Minority Members of Parliament (MPs) yesterday slugged it out as they began a debate on the Budget Statement and Economic Policy for the 2017 financial year.
The contention was more on the gross domestic product (GDP) projection, revenue targets, expenditure projections and other indicators captured in the budget presented by the Minister of Finance, Mr Ken Ofori-Atta, to Parliament on March 2, 2017.
As anticipated, the Majority described the budget as a goodwill message that would grow the economy, lower the cost of doing business, support the growth of local businesses and create jobs.
But the Minority described the budget as a deception devoid of actionable measures and policies to achieve the set targets.
The Minority argued that the removal of import duties would open the floodgates for the importation of more goods that would offer unfair competition to locally manufactured goods and consequently lead to the collapse of local business.
Majority's support
The MP for New Juaben South and Chairman of the Finance Committee of Parliament, Dr Mark Assibey-Yeboah, who moved the motion for the commencement of the debate, described the budget as the best budget so far that would move the country out of its current predicament.
He said the budget was concise, business-friendly and people-centered, which had resonated in the country, including Abossey Okai, Tudu, Suame and across the country's borders.
Dr Assibey-Yeboah said the budget, which indicated the government's decision to remove some taxes and reduce other taxes, would lower the cost of doing business, spur economic growth and create jobs.
That, he said, was unlike the National Democratic Congress (NDC) government that imposed taxes on so many areas, including savings, withholding tax, duty on petroleum, and Value Added Tax (VAT) on real estate sales.
Dr Assibey-Yeboah said in 2017, the economy was projected to grow at 6.5 per cent, and indicated that it was the first time in six years that the country would be recording such an economic growth.
He said the $1 million that would be given to every constituency annually would give the constituents the opportunity to determine the sort of development they needed in their respective areas.
Besides, he said, there would be a $219 million stimulus package for industry, and another $219 million for the development of zongos.
Dr Assibey-Yeboah said the one district, one factory project would grow businesses, create jobs and "make Ghana work again."
The MP for Ofoase/Ayirebi, Mr Kojo Oppong-Nkrumah, said the budget focused on five challenges that the government had outlined measures to tackle.
He mentioned the considerable debt overhang and rising interest payment, the expenditure overrun and accumulated arrears, the revenue under performance, growth which was falling and limited capital investment as the challenges.
On the current depreciation of the cedi, he argued that in the first quarter of every year, the cedi depreciated on the average by five per cent.
Minority's criticism
The Member of Parliament (MP) for Ajumako/Enyan/Essiam and former Deputy Minister of Finance, Mr Cassiel Ato Forson, said the budget had serious deficiencies which raised doubts about the attainability of the targets.
Besides, he said, the projections in the budget were disappointing despite the expected growth in the economy.
He said the expected economic growth would be driven by growth in the oil sector by 39 per cent but not through any effort on the part of the government.
For instance, Mr Forson said the agriculture sector was projected to decline from 3.6 per cent in 2016 to 3.5 this year, the education sector would go down from 7.9 per cent in 2016, 6.7 per cent this year, while the health and social services would reduce from 9.8 per cent in 2016 to 5.3 per cent this year.
"I was expecting to see the impact on GDP projections. I did not see anything like that", he said.
The MP for Ketu South, Mr Fifi Fiavi Franklin Kwetey, said the budget had lofty objectives and wondered how the government would be able to walk the talk.
He said the removal of import duties would allow the flooding of the country's market with competitive goods.
That, he said, would defeat the government's objective of unleashing the creative capacity of Ghanaians.
Mr Kwetey, who was a former Minister of Food and Agriculture, said the minister failed to remove duty on raw materials, remove the Energy Sector Levy, or reduce corporate tax from 25 per cent 20 per cent, which were campaign promises.
On the one district, one factory policy, he said "the problem is not about establishing factories, but the issue is about ensuring that the conditions are in place to make them viable."
Touching on the free senior high school (SHS) education policy, Mr Kwetey asked the government to be cautious as the full implementation would require GH¢3.6 billion annually, which would destroy the country's economy.
Source: Daily Graphic
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create, loot and share brigade that is all that the NDC knows they cant think out side the box
Some fake christians are insulting Muslims because they advised Samira to continue covering herself as she was doing during the campaign which both Muslims and Christians were happy with her. In the holy Bible 1 Corinthians 11:16 says and I quote "For if a woman does not cover her head, she might as well have her hair cut off; but if it is a disgrace for a woman to have her hair cut off or her head shaved, then she should cover her head." Fake christians who are insulting Muslims because they are practicing what the Bible says should bury their heads in shame. Read the Bible obey and practice what the Bible say. If you can't obey the Bible then don't insult anybody who obeys it, just shutupp and hide in your hole. May be to the fake christians the Bible has become primitive or outmoded so fake christians don't want to follow the Bible anymore. If you don't want to obey 1 Corinthians 11:16 then you are fake onapo christian. Onaaaaaaaaaaaaaaaaapo!!!!!!
Can you believe this a student accountant Ato Forson and a student economist FiFi Kwettey with little experience and no evidence of anything in life except steel with their managing leader Seth Terpkor are the lead spokesmen persons on economic issues for NDC ; do these two clowns understand the basic concept or strategy behind the budget proposed by NPP ; I DOUBT IT VERY MUCH !!!!!!; this idiotic full growth in the economy can be obtained by increase in the production of oil ; why on earth does the full rely on oil as a growth trend because prices can go up and down and therefore any turbulence in price of this commodity turn you off your target ; this full should listen to what the US ambassador said ; the cost of doing business in Ghana is too high ; the removal of certain import duty is a clever piece because it will generate business turn over and allow people to pay their taxes which will increase revenue to close the deficit besides the Ghana economy does not not manufactur spare parts so what competition is he talking about besides the the Npp government should STOP financing irrelevant imports and concentrate on using our scare foreign exchange to import tractors and fertilisers for agric not importation of cars etc ; if people wish to leve and buy high cost goods they can use their own dollors and pounds to import these goods and pay taxes ;this strategy may be perceived to cause inflation but then it is a wrong perception of the inflation besides most of these imports end up in Ivory Coast and Burkina etc ; Fifi Kwettey oversaw the decline of the Agric sector because he failed to understand that Agriculture is the key economic generator in any economy ; he fails to understand that pursuing export agriculture products for exports will generate enough foreign currency for Ghana by export targeting of specific counteries ; why should Ghana import tomantoes from Burkina or onions from Ivory coast ; cow foot and genitals from Burkina.
Tweaaaaaaa
The NDC expected to see a lot of borrowing to finance the budget. Internally Generated Funds (IGF), according to the Gospel Of NDC is for beer and 'khebab'. Borrowing is for development to pile up pressure on the economy. I think NDC should go to the Finance Minister for more explanation on the budget before they make their contributions. They are exposing thier limitations too much.
As for ndc...even Satan hates them.they do things Satan himself can't do.
Oh my God, ndc try to be a little constructive in your arguments.