Minority Says New GDP target signals decline

The Minority Caucus in Parliament says government’s survey of the 2023 GDP (Gross domestic product) focus from 2.8 percent to 1.5 percent flagged a normal decay of the country’s financial fortunes as opposed to the touted recuperation.
The Minister of finance, Ken Ofori-Atta, yesterday spoke eloquently about the splendid viewpoint of Ghana’s economy towards the last part of the year as he introduced the 2023 Mid-Year Budget Review in Parliament.

However, the Minority Chief, Dr Cassiel Ato Forson, tending to the media after the Minister”s show, expressed the descending amendment of the Gross domestic product target meant that the economy was declining, and that it would influence occupations and the overall government assistance of Ghanaians.

He said the cedi’s alleged dependability at present was simply fake, and that the cases by the Finance minister about the currency’s alleged recuperation were not upheld by proof on the ground.
He said the cedi’s present status was artificial since government had defaulted in the payment t of interest and principal on external debts.

Dr Forson focused on that the minister’s claim that the economy had “turned the corner” could likewise not be valid, and that the government had rather extended the burdens of normal Ghanaians.

Declining economy
The Minority leader said while introducing the 2023 Financial plan, the minister had vowed not to get a loan from the domestic market, “yet between January and June this year, the Minister has acquired GH¢5.5 billion from the treasury bills market with a guarantee to get GH¢41 billion more before the year’s over.

“No wonder inflation is going up. No wonder the central bank is busily increasing monetary policy rate.
No wonder the lending rate is still going up,” he said.

The Minority Leader said the public authority had the amazing chance to diminish loaning rate descending to some place under 15%, however because of the exercises of government, especially as far as over-acquiring and over consumption, loaning rate and market rate were all the while going up.

“I won’t be surprised that at the end of the year, inflation will not make any headway.

This is a gargantuan missed opportunity,” he said.
Dr Forson said he was just “warming” himself up for the normal discussion on the Mid-year Financial plan Audit in Parliament today.

Inflation, others
The Ranking Member on thr Finance Committee of Parliament, Isaac Adongo, addressed how the Finance Minister could profess to have turned the corner when inflation was 42%, saying before the year’s over, gross international reserves would be 0.8 months.

“You have turned the corner when the Governor of the Bank of Ghana (BoG) and the Monetary Policy Committee (MPC) just recently increased monetary policy rate to 30 per cent?

“You have turned the corner when the BoG has reported that the cedi has depreciated by 30 per cent?” he asked.
Mr Adongo said the Finance Minister was not even near the corner, let alone turning it.

He claimed that the central bank recorded a negative save to the tune of GH¢70 billion.

Mr Adongo further claimed that the Prudential Reserve, which is cash saved by commercial banks with the central bank, had been squandered
.
“All the money they have borrowed from abroad in foreign currencies to support the cedi is gone.

Truly, if you even remove government debt that they have caused of GH¢48 billion, you will in any case see that the BoG has an opening of GH¢22 billion,” he said.

Mr Adongo expressed out loud whatever this implied was that the Marsh was not good for reason since it couldn’t embrace financial strategy without printing cash.

He said the BoG examined account was most likely delivered last Friday with the conviction that it would be eclipsed by the previous Mid-year Spending plan Survey show when individuals had gotten back from the end of the week’s social responsibilities.

He said the issue would be returned to.