The Minority in Parliament has described Ghana’s economy as a sick economy that needs urgent economic recovery treatment.
Debating the 2022 Budget Statement and Economic Policy on Tuesday (23 November), ranking member of the finance committee, Cassiel Ato Forson said there is a clear indication of retrogression in all aspects of the country’s economy.
Ato Forson said his analysis is backed by trends such as unemployment and rising inflation in the country.
“The Ghanaian economy today is sick from what we call “spark-flation” with acute debt overhang syndrome, in other words, sarcoidosis. We all know that as we speak, there’s rising unemployment in this economy.”
“In fact, unemployment has become a national security threat. Mr. Speaker, inflation is rising, obviously as a result of food inflation because prices of food are going up. Again, prices of fuel are skyrocketing almost every window and that’s why we are seeing a surge in inflation,” he said.
“Government addressing concerns”
However, Kojo Oppong Nkrumah took a swipe at Ato Forson, stating that the government has taken steps to steadily address the concerns of the citizenry.
“Mr Speaker, by the year 2024, 6.6 million young people will be out of school looking for jobs. Any administration that is minded to deal with the challenges of our time will explore ways by which it can help ensure that these people get jobs and that is one of the first consideration that this budget answers.
As a matter of fact, the first thing we have done as an administration and indeed as a country is to expand the Ghanaian economy. In 2016 when the immediate past administration was leaving power, economic growth had come as low as 3%. But until COVID-19 hit us, we were growing at an average of 7% year on year and what that meant was that a lot of young people had the opportunity to get jobs in the private sector,” he stated.
The budget has generated mixed reactions from the public with focus being put on the abolishment of road tolls and introduction of a 1.75% tax on all digital financial transactions.
The Minority MPs in Parliament had said they have issues with the budget and will challenge some of the proposals in the budget during the debate before the House.