Prepare for social disturbance and upheavals as a result of economic hardship, John Jinapor advised government officials.
John Abdulai Jinapor, a member of the Finance, Mines, and Energy Committees of Parliament, is warning the government of a potential outbreak of social unrest and upheavals as a result of the severe economic hardships citizens are experiencing.
Mr. Jinapor asserts that the government has pledged not to increase wages proportionately while petroleum prices, taxes, and utility rates, among others, have increased.
This trend was partially attributed to the Bank of Ghana's strategy of increasing the prime rate to combat inflation.
This, he explained, will also lead to monetary and fiscal restraint.
According to the member of parliament for Yapei Kusawgu, this will drive a large number of people into the "poverty bracket" and lead to widespread anarchy.
"Even wages – they have pledged that they will not increase wages proportionally.
Your taxes will increase, your salaries will not increase proportionately, the price of gasoline and diesel at the pump will increase, and electricity rates will also increase.
"More persons will fall into the poverty bracket.
"This document indicates that the government must prepare for social unrest and social upheavals," he stated on Saturday's Newsfile on JoyNews.
Mr. Jinapor, citing the Monetary Policy Committee report of the Bank of Ghana, stated that investment has decreased from "80 billion to 64 billion." According to him, this is supported by the government's stringent fiscal consolidation measures.
Mr. Jinapor does not believe that the first installment of the country's $3 billion bailout request transmitted to the Bank of Ghana will be able to alleviate Ghanaians' economic burden.
He explained that the issue is not how quickly or slowly the IMF agreement was reached, but rather the impact of the program on citizens.
According to him, the IMF program has ripple effects, and the $600 million transmitted to the Bank of Ghana was simply to determine how the country could restructure its debt since it was unable to do so as a program requirement.