November 16 (Chronicle)- As government presents its 2007 budget today, ordinary Ghanaians are crying to the Finance Minister, Mr. Kwadwo Baah Wiredu to let it reflect in their ‘pockets’.
This call was made known to the Business Chronicle in a survey it conducted in Accra among a cross-section of Ghanaians.
People interviewed about their expectations of the budget were of the view that the ordinary Ghanaian do not care about figures of stable macro-economy, balance of payment, fiscal and monetary policies as well as big business terms the Finance Minister would deliver when he reads the 2007 budget today but what would reflect in their pockets. They are interested in the growth of the micro-economy, which would increase their purchasing power that is putting money into their pocket.
They stressed that the Government and the Minister have always said that the economy was on a sound track but it has not trickled down to the grassroots saying, “it may be that it was only the executive arm of government which is enjoying the supposed boom in the economy”. “We are not going to eat figure,” one said.
Mr. Kwame Antobam Okyere, a teacher indicated that things are very hard because of the meager salary he receives. He called on the Government to let the ordinary person have a good share of the national cake.
Joseph Sottie, a graduate unemployed prayed for a job. He had graduated from the University two years ago and is still looking for a job. He called on the Finance Minister to make sure the youth in employment programme was not politicized because he is a sympathizer of the opposition.
However, there were few people who thought they have made sweeping gains on the micro level for the past few years because of the macro-economic stability. Mr. Atakorah Koranteng, a Businessman reiterated that his business has had major profits, which has trickled down to both members of staff and his family as well.
He sympathized with the Ghanaians who are suffering and called on the Government to help them.
This phenomenon was not surprising as the Minister of Finance had earlier expressed concern about the non-responding nature of the country’s micro-economy to the positive stimuli provided by the stable macro-economic environment for the past few years in his speech delivered on his behalf at the Security Literacy Week Celebration in Accra recently.
The Minister seemed not to know why this was happening as all conditions for increasing the purchasing power of Ghanaians have been satisfied.
He asked; “Why are other countries, particularly the emerging economies seem to be achieving results for using the same economic measures as we have done in this country.”
The Finance Minister asked further; “Why the private sector as preferred as the engine of growth is not taking advantage of the stable macro-economic situation? Why banks are still adamant to review their lending rates downwards?”
“These and many other questions have occupied our minds?” he reiterated. The Finance Minister was speaking at the opening ceremony of the Security Literacy Week Celebration, which is to sensitize Ghanaians about the capital market and its potential to grow the economy, businesses and individual investments.
Commenting on the theme “The capital market: the missing key to Ghana’s economic development and growth,” he said the key should be found and be used to unlock the great potentials of the economy.
The minister is expected to announce that Ghana’s Gross Domestic Product (GDP) has reached 6.2 per cent this year as speculated by the Ghana Statistical Service (GSS) and its acting Government Statistician, Prof N. N. Nsowah-Nuamah after inflation dropped to 10.5% from 10.8%.
The Minister is also expected to announce the establishment of the Wages & Salaries Commission, which will be tasked to constantly deal with all issues relating to public sector workers’ salaries and wages.
The 2007 budget would also outline Government’s efforts and plans to resolve the energy crisis by providing detailed alternative sources of energy rather than the reliance on expensive hydro and thermal sources.
It has also been gathered that Government intended to formalize the export of essential services to health, education and peace keeping services.
The Statesman reported that public spending is expected to exceed the ¢45 trillion projected for 2007 in this year’s budget. It is expected to hit ¢50 trillion (from ¢42 trillion in 2006), making it one of the biggest inflation-indexed increases ever in the country’s history.
Government is hoping to take care of the gap between expenditure and domestic revenue (16 trillion cedis) through loans and grants from development partners.
Other things to be announced include the reduction of Ghana’s external debt to $2 billion from $6.2 billion in 2001, assessment of the Capitation Grant and the National Health Insurance Scheme.
All achievements made during the investment trips of President Kufuor would also be highlighted.
Meanwhile, other advisory bodies such as the Association of Ghana Industries (AGI) have asked government to grant all domestic manufacturing start-ups a five-year tax holiday while it takes steps to impose a minimum duty of 20 per cent on imported finished products which could be manufactured locally as well as special tax to be put on all advertisements of imported finished goods.
The AGI was also seeking the withdrawal of duty on all imported raw materials because imposition of taxes at the production stage turned to increase the cost of manufacturing and make the goods uncompetitive to imported ones.
The Association holds the view that shifting the tax from production to consumption would drastically reduce the cost of business and make the companies to become competitive.
Other concerns of the AGI are the delay in the payment of duty drawback, which it said, should be fast tracked, abolishing of the National Reconstruction Levy and other charges that it said, were impacting negatively on their cash flow.