Delivering his first state of the nation address to Parliament today [Tuesday], Nana Akufo-Addo bemoaned what he called fiscal indiscipline that has increased the country’s debt stock to 74 percent of its Gross Domestic Product (GDP).

“Too much time, energy and resources were spent in the past in my view, without a deliberate conscious assessment of the impact on jobs and whether or not we were spending wisely to improve the lives of the people, communities and businesses. But I was not elected by the overwhelming majority of the Ghanaian people to complain. I was elected to get things done; I was elected to fix what is broken and my government and I are determined to do just that.”

According to the President, the previous administration also missed all the targets under the International Monetary Fund (IMF) programme due to reckless expenditure and a mismanagement of the economy.

“I am in a hurry to put a government together. Our economy is in a bad state. Our worse fears have been confirmed. Ghana missed almost all its targets under the IMF Fiscal indiscipline reared its head in 2016. 7 billion cedis arrears had not been recorded. Fiscal indiscipline reared its head in 2016 despite promises in 2012.”

“Ghana’s debt stock in 2008 was 9.5 billion cedis but in 2016 the debt is now 122 billion cedis which is 74 percent of GDP. We will implement tough, prudent and innovative policies to rescue the economy. After eight years of NDC there is no fiscal space. The country now has to borrow for everything. Our economy growth rate has shrunk. Our GDP is estimated at 3.6 percent lowest in about 23 years.

The President said that, the “reality of Ghana’s finances are quite stark as a result of policy choices.”

According to him, “we find ourselves in the situation where Ghana’s total revenue is consumed by three main budgetary lines; wages and salaries, interest and payments and amortisation and statutory payments.”

These three items alone, according to him, account for 99.6 % of Ghana’s revenue.

He said the alarming situation will require his administration to resort to borrowing to finance government projects.

“This means that anything else that government has to do outside of these lines would have to be financed by borrowing or aid. After eight years of the previous government, there is practically no fiscal space left. The persistent result to borrowing for any additional expenditure is also not sustainable. We cannot continue this way with our public finances. I will not allow this economy to collapse under my watch.”

Despite highlighting these challenges, the President said his administration will “reduce significantly the fiscal deficit this year.”

Ghana’s economic growth declining

According to him, Ghana’s economic growth has also declined significantly.

“Notwithstanding the record amount of financial resources of the disposal of the previous government, Ghana’s GDP growth in 2016, including oil, is estimated at 3.6 percent. This is the lowest GDP growth in about 23 years,” he said.
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By: Ebenezer Afanyi Dadzie/citifmonline.com/Ghana

The post I was elected to fix things; not to complain – Nana Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.

The address, a constitutional requirement, was earlier slated for Thursday, December 22, 2016, but was rescheduled.

The President is expected to use the opportunity to tout his achievements during his tenure before he makes way for the incoming President, Nana Akufo-Addo, on January 7, 2017.

His address is also supposed to herald the end of the life of the 6th Parliament of the fourth Republic which would officially be dissolved on the midnight of January 6, 2017.

Deputy Director of Public Affairs of Parliament, Kate Addo, outlined the business activities of the House before its dissolution.

“…On Thursday, we have the State of the Nation Address which is a constitutional requirement of the President as per Article 67 of the 1992 constitution. Then on Friday at midnight, the House stands dissolved, so the life of the sixth Parliament will come to an end.”

“Minutes after the life of the sixth parliament stands dissolved, the next one is activated by the inauguration ceremony that will take place on the midnight of the seventh,” she explained.

Mahama takes Akufo-Addo on tour of Flagstaff house

On Wednesday, President John Mahama took the President-elect, Nana Akufo-Addo and his incoming Vice President, Dr. Mahamudu Bawumia, on a tour of the Flagstaff House at Kanda in Accra, ahead of the swearing-in ceremony.

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By: citifmonline.com/Ghana

The post Mahama to deliver final state of the nation address today appeared first on Citi 97.3 FM - Relevant Radio. Always.