Minority Leader in Parliament, Haruna Iddrisu, is of the view that the anticipated 2022 budget will not be rosy, therefore, Ghanaians should expect increased economic hardship in the coming year.
Speaking on Joy FM‘s Super Morning Show on Wednesday, Mr Iddrisu bemoaned what he called unclear data by government on arrears in several ministries.
This the Member of Parliament for Tamale South said causes him to worry about the economy former President John Mahama and the National Democratic Congress (NDC) will inherit in 2025.
“I don’t expect any rosy economy going forward. Ghanaians should expect and anticipate increased hardships early next year. That is what Ken promises to do and what he will do.
“I worry about the nature and character of the economy John Mahama may inherit in January 2025 because they [government] are not clear with the data. In all the ministries, departments and agencies, there are arrears sitting there that are not accounted for. They have no adequate provision for contingent liability and therefore it is problematic,” he said.
The Minority Leader said what government should do is to invest heavily in the country’s exportation as such initiatives would enable the economy to recover and reduce the hardships faced by Ghanaians.
Mr Iddrisu said the Akufo-Addo-led administration cannot always rely on increasing taxes to address its shortfalls and attempts to recover the economy. Thus, the need to look at other alternatives such as expanding the export portfolio.
“We all as a country must take a position on expanding exports as a way forward. Our exchange rate regime and the epileptic fall of the cedi – what this does to the economy is you are spending more on interest servicing. So very little is left for statutory payment before you come to compensation.
“But you will hear the Finance Minister and Dr Mahamudu Bawumia say that ‘hail us, the foreign exchange is relatively stable.’ You inherited a dollar to ₵4.2, today the same dollar is almost ₵6. You have the pound almost at ₵8.
“You cannot say conveniently, I will increase taxes to deal with it. There are other structural decisions we expect the budget to announce which must seek to deal with it, that is, expanding your export portfolio and investing more in your exports in order to strengthen the cedi and stabilise it for the long term and not a short term monetary intervention,” he explained.
Meanwhile, Mr Iddrisu said in measuring the standard of living and growth of the economy, unemployment must be a key tool.