Finance Minister Seth Terkper is expected to present the budget statement and economic policy of government for the 2016 financial year on Friday 13th November, with various sectors and stakeholders in the country keeping their fingers crossed with high expectations.
One of these stakeholders are the minority in Parliament, who are looking forward to an update for the economic performance of the year and the macro indicators for the year. Whilst they have hinted at opposing any “hidden taxes in the new budget”, they also expect a concrete promise to end dumsor amidst addressing workers’ salaries.
Dr Mark Assibey Yeboah, a ranking member of Finance in Parliament has stated that the minority will oppose any “hidden taxes” that may be contained in the new budget.
According Assibey Yeboah, government has not be innovative by concentrating more on non-tax revenue in order to raise taxes, adding that the Ghanaian people are already overburdened with the load shedding. “The Ghanaian taxpayer needs a breather”
He said cocoa investment can rake in a lot of revenue for the country. “If you do the investment in terms of mass spraying, pesticides. It increases the crop yield, ultimately revenue from cocoa goes up. So if you want to increase revenue, you should not be looking at introducing taxes, non tax revenue is an area we have to look at and it depends on the investment you are targeting” he told B&FT.
The New Juaben South MP, one of the spokesperson on finance for the minority says even though they would be eager to hear government’s projections for the upcoming year, he added that the budget was going to be situated on the IMF programme.
The IMF programme seeks to ensure that government clears arrears and does not build up new arreas: “all of this we will look out for in the budget, as to how they are going to be cleared and the non-buildup of arrears” he said.
He said in 2016, the IMF requirement to government as far as Bank of Ghana lending to the state should be zero in 2016, which he believes they would be keen on hearing.
“We want to see what government seeks to achieve in 2016, so the target government sets will give an indication whether government is looking to growing the economy or stabilizing it”
According to Dr Assibey Yeboah, government is torn between stabilizing the economy and growing the economy.
“There is a tradeoff between growing the economy and stabilizing the economy. So in the election year, would government choose economic growth over stabilization and that is what the IMF programme seeks to do”.
For him, he reckons it will be difficult for government to veer off, due to the fact that it is an election year and government may want to undertake capital expenditure such as building roads, hospitals, among others.
“Government will have to borrow more in order to spend. Are you going to introduce more taxes? It will be counterproductive”.
He reckons government has the first three months to introduce taxes, because the budget is read in November and if there are any hidden taxes it will be factored early enough. “You don’t want to go into 2016 to introduce new taxes. We will resist any tariff increases” he told B&FT exclusively
The IMF is going to constrain government by getting government to be discipline, eventhough government may want to do things that will fuel growth, Assibey Yeboah claims.
Ghana has a three-year arrangement with the IMF for US$918 million, which was approved on April 3, 2015.
It aims at restoring debt sustainability and macroeconomic stability in the country to foster a return to high growth and job creation, while protecting social spending.
The IMF has already reviewed economic performance under the programme, supported by an Extended Credit Facility (ECF) arrangement.
Education expectations
Allocate more money for free day sec. educ
A former minister of Education and Member of Parliament for Assin South, Professor Dominic Kwaku Fobih, has urged government to allocate more money in order to sustain the free day secondary education it has started.
Government has already presented Gh?12million to the Ministry of Education to kickstart the programme.
However, Dr Fobih reckons government has to do more to sustain it for the long haul. “I expect government to allocate enough money for free day seconday education”.
“The statutory debt which is accruing should be paid in order not to affect the quality of education”
He blamed the poor performance of students in the public school system on the failure of government to release funds on time to run the institutions.
According to Prof. Fobih: “Against the background of a weak management system, low morale and long periods of non-release of statutory funds, the education sector — especially public education — is gradually grinding to its lowest ebb, and public confidence in the basic school system is tilted in favour of private schools”.
The opposition group says government has not shown commitment, particularly, in the release of statutory funds for the sector.
There are still huge arrears in GETFund, School Feeding, Capitation Grant and the salaries of new teacher recruits.
Professor Fobih says he expects the budget to approve of statutory fees, and release more funds in the education sector.
Mines and Energy expectation
“End Dumsor by end of the year”
Dr Nana Ato Arthur, a member of the Mines and Energy Committee of Parliament says government has to streamline the three sectors of oil, gas and power which will enable the country rake in more revenue.
According to Ato Arthur,he is expecting to hear from the budget reading on Friday that government has put in place concrete steps to end dumsor.
“Dumsor is still with us, and has been a major issue, so I expect to hear something to address which will end it by the end of the year” he said.
The Member of Parliament for Komenda Edina Eguafo Abrem also indicated that he expects Volta River Authority (VRA) to settle the debts owed Ghana Gas Company.
“Ghana Gas says if by next month. VRA does not pay their debt, they will cut supply. So we are hoping government pays VRA,so they can also settle their indebtedness” he told B&FT on phone.
Health
For Dr Richard Anane, the ranking member on Health he expects government to scale up capitation in health service delivery in all the regions.
The Minority in a post 2015 budget review has stated that the President has given an indication to Ghanaians in his 2015 budget that Capitation in Health service delivery will be scaled up to all the regions in Ghana except Greater Accra and the Northern Region (ref par 633 of the 2015 Budget). Capitation in insurance increases out-of-pocket expenditure and therefore further impoverishes subscribers. In other words, it will lower the living conditions of subscribers.
“Beyond all this, one must relate to the many frictions that have embroiled the relationship between government and health practitioners. The incessant hiccups certainly affects the quality of life of the people. We have time and again suggested to government to devise appropriate conflict resolution mechanisms to deal with the souring relationship. In both 2013 and 2014 there were several confrontations between health practitioners and government. Unfortunately, there was no new policy direction in the President’s message to thaw the relationship between government and the health practitioners. The nation needs that from you, Mr. President”.
In spite to the above concerns and expectations, the strengthening of the agriculture sector as well as the mining, industrial sectors, the minority expects to be addressed urgently ahead of 2016.
“If the national economy is good. I think it will affects are the other sectors we have talked about and I hope government will address them” Prof. Dominic Fobih said.
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