GRi in Parliament 05 – 03 - 2003

Budget debate opens in Parliament

I did not err by describing budget "killer"-Asaga

New twist to case filed against A-G

Law of Karma" Affecting NDC –DPP

 

 

Budget debate opens in Parliament

          

Accra (Greater Accra) 5 March 2003 - Minority Spokesman on Finance, Moses Asaga (MP) Tuesday, opened the debate on the government’s financial statement for the year 2003, in Parliament and called on both sides of the House to look at the document devoid of politics.

 

To set the tone, he admitted that sections of the statement contain good intentions, but was quick to add that most of the targets set are unachievable. Asaga who was criticised severely for describing the budget statement as a “Killer Budget” moments after it was presented to Parliament, said every minority spokesman worth his salt should at the spur of the moment be able to describe a budget based on certain aspects of it and it is a convention. Referring to former minority spokesmen and how they described former budgets, the minority spokesman said, I am on target.

 

Leading the minority which strength in the House was reduced as a result of the bye-election in Wulensi, Asaga said, “in 1979, Hon. Jones Ofori Attah described the Liman’s budget as a killer budget. In 1998-2000, Dr. Apraku (now minister for Trade and Industry) described the NDC budget as Lame Duck Budget from Lame Duck Government. CEPA described the same budget as Dead on Arrival. In all these circumstances, the government of the day was not offended.

 

Giving reasons for his description of the budget as a “Killer Budget”, Asaga also MP for Nabdam said fuel prices which of course is part of the budget went up for almost 95% with just a slim increase in the minimum wage in spite of labour’s call for at least 68% increase. This to him is a clear sign of government’s insensitivity to the plight of the working people of Ghana.

 

He said the argument that increasing wages will fuel inflation is unattainable and a very lame excuse from the government. This policy has a Value Added tax element in it and has affected prices of all goods in the market and has most importantly affected the people’s purchasing power.

 

The purchasing power of Ghanaians by this particular action has eroded, Asaga said. According to the MP, prices of such goods as milk, sugar, rice, hospital and school fees, transportation fares and even prices of the controversial “Apuskeleke” activities have also gone up.

 

The mention of “Apuskeleke” drew the Senior Minister, John Henry Mensah to his feet. He wanted to know the sampling method he used to know that the price of “Apuskeleke” have gone up, drawing laughter from the floor of the House.

 

Asaga who conveniently ignored the question went on to point out that, empirical studies have shown that petroleum and fuel price increases, government over-borrowing and over-spending and wage increases are the main factors which can cause inflation in the Ghanaian economy.

 

On government’s targets for this year, Asaga was emphatic that the government’s targeted net borrowing at zero for this year is a mere political rhetoric, which is unachievable. He called on the Ministry of Finance to be more realistic and review this figure because it amounts to a wild-goose chase.

 

Historically, no government has achieved net borrowing at zero. In 2000 government over-borrowed to the tune of ¢3 trillion. In 2001, the NPP government over-borrowed by ¢700bn. In 2002, the government promised ¢480bn and net borrowing was ¢2.3.

 

Asaga commended the government for moving away from chasing wild dreams such single digit inflation rate, as was the case last year. However, he noted that the government’s projected GDP growth rate of 4.7% is not ambitious enough and cannot help the country attain her cherished dream of attaining a $1000 per capita income by the year 2015.

 

Asaga told an unusually quiet House that in spite of the tremendous goodwill that the government has enjoyed since it came to power, it could only set the same stagnant growth rate that the country has witnessed for the past 10 years.

 

In the mid 1980s and early 90s, 4.55 growth rate was significant and tremendous achievement considering the fact that Ghana recorded negative growth in 1980-1984. But according to Asaga, from 1996-2003, if governments are still delivering below 5% GDP, then the economy will not expand, expected employment will not generated and therefore we will not be able to achieve $1000 per capita income in year 2015 and therefore no hope.

 

We must attain economic growth rate of 6-8% otherwise, we forget it, he added. Currently, economic experts both from within and without including three members of the minority National Democratic Congress are working closely with government to find solutions to the country’s economic problems. Asaga has also reaffirmed him description of the Budget as “Killer Budget”.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

I did not err by describing budget "killer"-Asaga

 

Accra (Greater Accra) 5 March 2003 - Moses Asaga, the Minority Spokesman on Finance, on Tuesday said he did not err by describing the budget proposal "killer" because it was harsh and lacked relief for the ordinary person.

 

He said the fuel price hike had affected every aspect of life in the country adding: "We thought government was going to cushion us against it but we stare disappointed."

 

The Member for Nabdam was contributing to a debate on the financial policy of government for the year ending 31 December 2003. Asaga said the purchasing power of the Ghanaian had eroded as prices had shot up so high.

 

"We all understand that three factors trigger inflation and these are petroleum price hike, over expenditure or over borrowing by government and wage rise. So for government to say high wages would bring about inflation is just unfair."

 

He asked that the three factors should be balanced in a manner in which the worker would not be the loser. The Member accused government of trying to "smuggle in" an increase in the VAT through the "back door".

   

Asaga, who was a Deputy Minister of Finance in the National Democratic Congress (NDC) government, said government had set very low targets that were easy to achieve but would not help in the expansion of the economy.

 

He said the 4.7 per cent Gross Domestic Product (GDP) target was modest adding that African economies would have to grow at 7 per cent annually before at least half of the continent's population could be rescued from poverty.

 

The Member said Ghana's economy should be growing at 5 per cent," in the early 80s when we had experienced negative growth previously, we could forgive ourselves for growing below three per cent."

 

He said government's zero net borrowing target was not realistic. "Historically, no government has been able to achieve zero net borrowing." Eugene Atta Agyepong, Chairman, Finance Committee, said the budget was a departure from the past when government depended heavily on donor inflows. "We are looking wider now to bring in money within our own system."

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

New twist to case filed against A-G

 

Accra (Greater Accra) 5 March 2003 - A writ challenging the Attorney General on the legality of charges brought against five former state officials implicated in the Quality Grain case has been withdrawn by the Plaintiff, Frank Bo Amissah. He did not offer any reasons for withdrawing the case when the Supreme Court sat to hear the case this morning.

 

Amissah’s lawyer however believes that his client withdrew the case because he is under pressure from certain quarters. Attorney General, Nana Akuffo Addo, however, urged the Court to continue the case in view of the debate that it had generated. The Supreme Court therefore fixed 12 March for the hearing. Judgement in the Quality Grain case was, last week, adjourned because of the writ at the Supreme Court.

 

Five former government officials including two former Ministers of State have been charged with seven counts of conspiracy and wilfully causing financial loss to the State, contrary to Sections 23(1) and Sections 179 A (3) (a) of the Criminal Code 1960, Act 29. They have all pleaded not guilty.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Law of Karma" Affecting NDC –DPP

 

Accra (Greater Accra) 5 March 2003 - Democratic Peoples Party (DPP) leader Thomas Nuaku Ward-Brew has predicted very dire times for the National Democratic Congress (NDC) in the period leading to the elections of 2004 and even beyond the elections.

 

Ward-Brew who was “ditched” from his position and roles in the pro NDC EGLE Party, under bizarre circumstances, just before Election 2000 thinks the party has no future.

 

According to him, “the worst is yet to happen to the NDC” and submitted that the NDC is currently in tatters only awaiting further ruins. He none-the less had a salvaging theory for the party; it should be completely dismantled, restructured and repackaged to meet the aspirations of the electorate.

 

Going spiritual but exhibiting signs of bitterness from past treatment, Ward-Brew told the Network Herald that the Law of Karma must be having a toll on the NDC whose leadership tried unfairly to strangle the junior partners in the Progressive Alliance i.e.DPP and Egle. He also accused them of isolating the founder of the Party, Flt lt. J.J. Rawlings from core Party activities for very selfish motives.

 

He recalled that the real challenge confronting the former ruling party is the might of the many power blocks within their ranks who continue to exert influences that the people they are leading are not ready to accept. Now in opposition, party loyalists continue to see most of these “godfathers” as persons who only want to maintain the status quo while they look elsewhere when it comes to the issue of funds to run the party with.

 

“It is rather unfortunate that none of these so called opinion leaders in the NDC has gathered the moral courage over the eight years when the party ruled Ghana to conduct a complete evaluation of the weaknesses and strengths of the party and also conduct a scientific post-mortem on why it lost the 2000 elections.”

 

“These power blocs have rather opened the Party up to opportunists who pay eye service because they have divided loyalty that can only lead the NDC to its demise.” Ward-Brew described Ex-president Jerry Rawlings as an ‘intrinsic factor in both national and local politics that cannot be wished away like that.”

 

He said now that Rawlings, who served as the sole unifying factor of the NDC is brazenly challenged by some in the party’s leadership especially those who hid behind his charisma when it was expedient to the extent of possible marginalisation, a secrete conspiracy to prevent the Party from coming back to power again has been hatched.

 

The DPP leader advised the current crop of NDC leaders in executive positions especially the former Ministers of State to retire from Politics and rather prepare the stage for the next generation of Politicians, which includes Prof. Atta Mills the flagbearer of the party to help coin a new image for the party to endear it to the public.

 

He also advised the former President to distance himself from any kind of mudslinging as is being witnessed in the body politic in the country at the moment and rather contribute to nation building as an Elder Statesman. He thinks the former President has done so much for both the country and the NDC and must therefore be preserved and not be reduced to an ordinary person” who is kicked about”. - Source: Network Herald

 

Send your comments to viewpoint@ghanareview.com

 

Return to top