THE Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, will present the last budget and financial statement of the New Patriotic Party (NPP) government during its second term on November 15.
Expectedly, the budget for 2008 will cement an era of impressive economic gains that have been anchored on a healthy macro and micro-economic climate. The rate of inflation, which hovered around 45 per cent in 2000 and consistently eroded the modest gains made in the past, had been drastically reduced to 10.5 per cent as of last month. Additionally, the rate of depreciation of the cedi has been impressively controlled to an average of two per cent a year. The country’s Gross Domestic Product (GDP) has also recorded consistent growth from 5.2 per cent to 6.2 per cent last year.
Arguably, the Budget and Financial Statement may not instantly guarantee the attainment of the highest standard of living for Ghanaians. Yet it represents a critical document that spells out the country’s economic and financial direction, providing a framework for spurring economic and financial growth. That is why many Ghanaians expect something that will improve their economic fortunes.
We are very much aware that the Ministry of Finance and Economic Planning and the relevant agencies and departments have the human and material resources to ensure that this year’s budget meets the hopes and aspirations of the people.
As usual, there will be a lot of competing demands. The critical sectors such as education, health and agriculture will again come up strongly with budgets that may need to be met if the gains made in the past are to be sustained.
We believe that the necessary steps will be taken to ensure that the very critical needs of the people are taken into consideration to ensure not only a smooth economic year but also a peaceful labour front.
Over the years, the dependency of our budgets on external funding and loans has not only been criticised; it has sometimes delayed development projects and the release of funds. It is also true that some funds never get disbursed by the development partners.
It is for this reason that the DAILY GRAPHIC adds its voice to the call for the country to internally generate more funds to finance its development agenda and control its economic and financial direction to a larger extent. That may require the strengthening of the tax regime and the plugging of loopholes to maximise the revenue from taxation.
While we laud efforts to rope in the informal sector into the tax net we hope that the 2008 budget will aggressively intensify those efforts to grant us more revenue to initiate more development projects and create more jobs in order to empower the people to provide for their basic needs.
The country has just emerged from an energy crisis that again highlighted the need to address our energy needs in a more comprehensive manner. The 2007 Budget spelt out the government’s intention “to speed up the development of renewable energy technologies, particularly wind, solar and waste-power”. Perhaps that is another area that should be highlighted in the 2008 Budget, this time in a more definite and pragmatic manner.
The DAILY GRAPHIC calls on the minister to present a budget and financial statement that will translate the social and economic conditions of the people, such that poverty, disease and want will be brought under control. This way, the Kufuor administration will leave a lasting legacy of having translated macro-economic gains into better living conditions.
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