The Minority in Parliament in Parliament is demanding a new budget from government that addresses the current difficulties in the country.
At a press conference today [Wednesday], Minority’s spokesperson on Finance, Cassiel Ato Forson, said the budget, which was presented in November 2018, has been thrown off gear due hence the need for government to bring a new budget to meet the challenges confronting Ghanaians.
“The rapid decline in the value of the cedi has thrown the economy in disarray and thprojections surrounding it as contained in 2019 budget. This has therefore undermined the confidence in the economy which is also sending wrong signals to the investor community. This calls for urgent steps to be taken by government to restore the economy.”
“The starting point is that we should be considering a new budget which considers all the distortions and serious problems occasioned by the fall of the value of the cedi. At the minimum we expect a statement to Parliament assuring the nation on the steps taken by government to address the instability of the economy. The budget as presented by the Minister of Finance can no longer be relied upon. It’s credibility and stability have completely been undermined by the cedi,” he added.
Presenting the 2019 budget in November 2019, Finance Minister Ken Ofori-Atta said government will spend a total of GH¢73.4 billion in 2019.
The total expenditure estimate, which is inclusive of clearance of arrears is equivalent to 21.3 per cent of total economic output, measured by gross domestic product (GDP).
The 2019 estimate is also 27 per cent higher than 2018 projected.
Giving a breakdown, the minister said some GH¢19.4 billion, representing about 26.5 per cent of total expenditure, will be expended on wages and salaries
He said the wage bill is anticipated to reduce to 5.6 per cent of GDP from the 5.9 per cent projected outturn for 2018.
Goods and Services will also consume some GH¢6.3 billion while some GH¢18.6 billion will be spent on interest payments of public debt.
Public debt stock as at September 2018 was GH¢170,839.53 million, comprising external and domestic debt of GH¢86,647.60 Million and GH¢84,191.93 million, respectively as shown in figure 1. The rate of debt accumulation in 2018 is 19.8 percent, driven significantly by the banking sector bailout