GHANA’s Minister of Finance and Economic Planning, Seth Terkper, is expected today to present to the peoples’ representative—the Parliament—the government’s budget for the 2016 financial year. Article 179 (1)of the constitution, mandates the President to cause to be prepared and laid before Parliament at least one month before the end of the financial year, estimates of the revenues and expenditure of the Government of Ghana for the following financial year.
THIS is a big deal because the budget gives the people of Ghana an idea of how the government intends to raise and spend the public purse. Indeed all eyes and ears will be watching and listening closely to the finance minister because the budget in one way or another affects every aspect of the economy including even the private sector.
THE choice of how government mobilises revenue and its expenditure has a direct effect on the general economy. If a government decides to continuously raise taxes that can affect investor confidence and businesses as well as people’s pockets.
THAT is why we at Today are particularly concerned about the level of taxes and levies imposed on the people of Ghana. The country has seen the imposition of not just more taxes and levies but also quantum increase of same under this current government than before.
THIS simply means this government has collected more taxes from the citizenry than any other government. We have seen hikes in import duties, income tax, VAT on a range of services among others. Yet not much has been seen in terms of the proper application of these revenues and despite the Ghana Revenue Authority (GRA) always meeting their revenue target, we are always unable to meet our needs as a country. That is quite baffling!
RAISING the money is one thing and spending it is a different ball game. We are very concerned by the apparent lack of financial discipline on the part of government that has consistently failed to spend within its means. This problem is the reason Ghana finds itself in the current economic mess.
IN 2012 Mr. Terpker decided to spend beyond what had been budgeted for and most of the expenditure went into unplanned projects which the government felt compelled to do because it wanted to win the elections in that year.
THE result of that action is that the country simply went broke and as a consequence every Ghanaian is still reeling under economic hardship which is self-inflicted. Now this same government has ran to the International Monitory Fund (IMF) for support.
WE can only hope that Mr. Terkper and his cohorts will be disciplined enough to go by the dictates of the IMF since it was them (government) who approached the Fund and not the other way round.
NEXT year is another election year and we cannot vouch the government’s sincerity in keeping within its spending limits. Can an NDC government which is facing possible defeat in 2016 sit and not spend out of budget when what it needs to perpetuate itself into office is more money to spend?.
THIS is a challenge Mr. Terpker has to contend with. For sure he must be prepared to whip all ministries and agencies in line to ensure they do not overspend. He must be ready to take the flak from his colleagues who would spare no moment to blame him for their defeat. This nation cannot go bust after every election. Mr. Terpker must crack the whip!
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