Cape Coast, Jan 12, GNA- Mr J.H. Mensah, the Senior Minister, said on Monday, that donor support to the country is based on confidence in the nation and its ability to repay loans.

Ghanaians should therefore disabuse their minds of the notion that the nation is becoming over dependent on such support because they are relevant for the growth of the nation.

He said this when he led a three-member ministerial team to answer questions at a ''People's Assembly' at the Cape Coast Polytechnic. The theme for this year's assembly is " Good Governance Through Democracy."

Professor Dominic Fobih and Ms Christine Churcher, Minister of Lands and Forestry and Minister of State for Basic, Secondary and Girl-child Education respectively, were other members of the team that was accompanied by Nana Prah Agyensaim, a member of the Council of State. Mr Mensah said loans are given with the belief that they would be properly utilised. ''The problem comes only when the government is unable to honour its debt obligations.''

He said all countries depended on each other and "are each his brother's keeper" and stressed that the talk that the nation is depending too much on donors is not tenable.

Mr Mensah said raising taxes to generate more revenue for development would increase bribery and corruption since many people are likely to evade payment of the requisite taxes by greasing the palms of officials.

"Taxation has its limitations", he said.

On a call for an increase in the SSNIT loans because prices of goods are likely to go up when the budget is read, the Senior Minister explained that the budget is about financial projections and not about announcing price increases.

Touching on the need to ensure peaceful elections, he appealed to the people to help ensure that this year's elections are conducted peacefully.

He urged those who attend the 'people's assembly', to be patient and ask questions in a respectful manner.

Mr Mensah assured those who are unable to have the opportunity to put across issues agitating their minds at such forums to endeavour to contact their District Chief Executives, Regional Ministers or Members of Parliament.