Ghana's economy heading into crisis – Adongo
Member of Parliament for Bolgatanga Central, Isaac Adongo has observed that the Ghanaian economy is heading for doom because of the inappropriate and relatively high government expenditure.
Read full articleAccording to Mr. Adongo, the improper allocation and disbursement of funds on the part of the NPP government is only plunging the country into economic crisis and a phenomenon which leaves the nation’s bursary with little or no funds for infrastructural projects.
In his submission, he argued that, in 2018 government generated only GH¢35bn from taxes all of which was allocated to the funding of compensations and interest costs, which left nothing for the government to use to undertake developmental projects.
“…We generated only GH¢35bn from taxes, all of that taxes is spent on just compensations and interest cost, so now ask me and the government how are they are going to fund infrastructure, how are they going to fund even the statutory payments.”
In his view, the NPP government’s poor allocation of funds ignited their cover up plan of reallocating some funds from the GETFund, Health Insurance and other statutory funds.
“That is why they came with the strategy to take all the monies away from GETFund, Health Insurance and even the one that is left they still go in there and realign it to other expenditures.”
He added, “…The truth is that the economy is heading for crisis, if you continue this to 2020, it means that even the monies we’ll be borrowing will be consumed by just three-four items and that is how scary our physical situation looks like”.
But the Finance Minister last week gave an assurance that the economy would be back on its feet in a couple of weeks once the cedi is stabilized.
Mr. Ofori-Atta hinted that the economy would be injected with some capital including the $750 million Standard Bank bridge facility to deal with the challenges of the Ghanaian economy.
