A former Finance Minister, Dr. Akoto Osei is predicting the current economy of Ghana, saying that by the year 2014 it will move backward and there will be not much different when we will compare to this year 2013.
Dr. Akoto Osei defined the government policy of handling the economy of Ghana, they are spending much more than they can afford.
He was talking on Joy FM’s Newsfile aired on Multi TV last weekend where the guests were discussing on the 2014 budget which was presented in parliament last Tuesday by Seth Terkper, the Finance Minister.
Seth Terkper brings in the knowledge of the Ghanaians that they we would like to miss 9 percent deficit target this year, which will generate the gap of 10.2 per cent of GDP. He also said, as planned at the end of this year, Ghana failed to maintain inflation under 11 percent.
However, the Finance Minister is saying that by the year 2014, we have a target to achieve 9.5 per cent, plus or minus 2 percentage points. The other target to achieve in the year 2014 is to reach the economic growth of 8 percent and we will seek to trim its budget deficit to 8.5 percent of gross domestic product.
Dr. Akoto Osei says, we can achieve it what we have planned since 2009 budget, but we need a little more effort.
The Government plans a strategy based on what they have, it can reduce depending on how much there will be an increase in intended revenue.
There is fall in every category of tax, 17%, in Personal income tax, 21% in company tax and 14% in VAT. He added, government got 15 billion Ghana cedis in returns while they are expected to raise 17 billion Ghana cedis.
Dr. Akoto Osei said, the government has failed to generate the revenue to their expectations. They cleared 1.9 billion Ghana cedis in debts when they only promised to pay only 140 million Ghana cedis.
Whoever has been responsible for this estimation to be very careful, you cannot miss this margin with a huge difference, it shows how they are planning.
He says, the main causes of Ghanaians suffering today are due to wrong decisions and wrong calculations.
He finished with this statement, if from day one we have worked out our plans; we should not be suffering today with such a big debit on us.
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