Economist Dr. Lord Mensah wants the government to follow strictly its plans outlined in the midyear budget review in order to achieve growth targets.
He explains that though government has cut down its expenditure, it will need to intensify efforts to increase revenue.
Dr. Lord Mensah’s comments follow the presentation of the midyear budget review by Finance Minister, Ken Ofori Atta to Parliament, yesterday.
“I realize that the indicators on the ground favour them as a government…they are shifting the goal post to the private man. They are putting up structures for all government’s poverty initiatives to ensure that they take effect. If they were to leave all those indicators high and the government continues to spend and continue with the initiatives, they may not be effective,” he stated.
He added, “They are trying to put down macroeconomic environment to be serene for businesses and at the same time when they roll out their policies they will take effect,”
Among the revisions outlined in the 2017 budget is the cut in government expenditure.
Under this, the government is seeking to reduce its spending on goods and services in the public sector by GH¢867.0 million.
Also, government plans to reduce total transfers to other government units, which comprise all statutory and earmarked funds by GH¢553.2 million.
In addition, there is an adjustment of GH¢683.0 million to capital expenditure.
The Minority has sharply criticized the government for this plan describing it as unacceptable.
But in Dr. Lord Mensah’s view, the posture by the NPP government to create the needed environment for businesses to grow should suffice should the policies be strictly adhered to.
“Some of the statements they were making in their manifesto were that we want to convert this economy into a taxable and production one. But production can come into full force when the private sector can access funds at a lower cost, production can be effective when the private man puts his business down and he knows that in the future the real returns can be stable.”
“It’s a refocusing and more or less a restructuring of the economic dynamics. There’s actually nothing new here,” he said in addition.
–
By: Pius Amihere Eduku/citibusinessnews.com/Ghana