“Unfortunately, the worst is ahead of us”, Member of Parliament for Ajumako-Enyan-Esiam constituency and the Deputy Finance Minister during the erstwhile Mahama administration, Cassiel Ato Forson has predicted.
This comes a day after the vice president, Dr. Mahamudu Bawumia addressed the nation on the economy.
He opined that the current economic downturn the country is plunged into is a result of poor economic policy choices, mismanagement, and incompetence.
He questioned the current administration’s decision to “clean up” the financial sector with the amount it used, borrow under the disguise of covid, and ramp up the budget deficit in 2020.
“Why use about Ghc25b to collapse banks when you needed just Ghc5billion to save them? Why did you hide behind COVID to borrow so much for the 2020 elections? Why did you ramp up a budget deficit of 16% in 2020 when our West African nervous did an average of 6%? Why did you introduce so many populist policies without budgeting for them?”.
Ato Forson described as “a tip of the iceberg”, Ghana’s current economic difficulties.
Bawumia announced that COVID-19 expenditure, the Banking Sector Clean up exercise and the Energy Sector Excess Capacity payments cost GHC50.1 billion and were financed from borrowing.
Data presented by the vice president noted that Ghana’s fiscal deficit in 2020 was 15%, the highest compared to Nigeria’s 5.8%, Egypt’s 8.2%, Cote D’ivoire’s 5.6 %,
Source: opemsuo.com/Hajara Fuseini