<<Print>>

Hot exchanges characterised the first day of the debate on the 2013 budget statement in parliament yesterday, with the Minority accusing the government of creating an unprecedented budget deficit in 2012 resulting from excessive expenditure. The Minority consistently punched holes in the budget which it described variously as �empty keke�, and �budget of no hope� while the Majority did everything to defend it. There were some sorts of �hecklings� from both sides of the house as members took the floor to contribute to the debate. In seconding the motion on the 2013 budget statement of the government moved by the Finance Minister, Seth Terpker, on Tuesday, March 5, chairman of the Finance Committee of Parliament, James Klutse Avedzi, said the budget was a carefully-thought-out one that would help address the economic challenges facing the nation. He said even though the economy recorded a growth of 7.1 percent in 2012, as against 14.4 percent in 2011, the receded growth was far better than global economic growth of 2.3 percent and the sub-Saharan growth of 4.8 percent. According to the chairman of the Finance Committee, who is also the National Democratic Congress (NDC) Member of Parliament for Ketu North, the government put in place cogent policies that arrested the negative growth in that sector and recorded an appreciable growth of 2.6 percent as against 0.8 percent in 2011, even though the targeted growth was 4.8 percent. He said the industry sector had serious challenges and recorded a growth of 7 percent as against 41.4 percent in 2011 but there were brighter prospects ahead. Explaining further the reason why the 2012 budget recorded the unprecedented budget deficit, Hon. Klutse Avedzi said the public wage bill increased significantly over the period because of the implementation of the single spine salary structure. He further indicated that there was an over-estimation of revenue generation and that the government recorded serious shortages in revenue with many people not paying taxes. He also indicated that there was a shortfall in grants while the government absorbed subsidies and utilities to the tune of GH�1.9billion. He said to address the shortfall in revenue, government would soon be putting before parliament, revenue bills and tax administration bills. He asked the government to amend the income tax law. �If there is any blame which I believe there is none, it should not be put on the government,� he said. Usain Bolt Contributing to the debate, the Minority Spokesperson on Finance, who is also a ranking member on the Finance Committee, Dr Anthony Akoto Osei, likened government�s rate of spending to Usain Bolt doing the 100-meter race. He said, for example, that in 2012, some ministries, departments and agencies far overspent what Parliament approved for them. He mentioned the ministries as Ministry of Health which overspent its budget by GH�27million; Ministry of Education overspending by GH�46million; Ministry of Environment, Science and Technology overspending by GH�60milliion; Ministry of Energy overspending by GH�70million; Ministry of Roads and Highway overspending by GH�270million; Ministry of Youth and Sports overspending by GH�350million, with the Office of the President also overspending by a whopping GH�650million. He said these ministries together with other departments and agencies overspent a total of GH�1.8billion, making up 2.5 percent of the country�s Gross Domestic Product (GDP). He said another area seriously affecting the fiscal situation of the country was arrears accumulation which he said could have a debilitating effect on the country�s economy. �Mr Speaker, the government has accumulated an additional GH�4.1billion arrears owed to suppliers of goods and services, road contractors, health service providers, school feeding service providers, students on scholarships abroad and capitation grants to schools,� he noted. Crisis �Mr Speaker, when you read all earlier budgets from 2009 to 2012, you find some common principles on the fiscal situation of the country including unreasonable projections, a gross underestimation of true expenditures, higher arrears accumulation, higher deficits, higher domestic borrowing and if you add these to the record overspending that occurred in 2012 election year, one can begin to appreciate the enormity of the mess we find ourselves in,� he said, stressing that the country was currently in a fiscal crisis. The NPP MP for New Juaben South, Dr Mark Assibey-Yeboah, said the country was fast heading for HIPC again under the NDC after the economy was transformed into a buoyant one under the previous NPP government. He said the current deficit of 12 percent, coupled with excessive borrowing, would soon grind the economy to a halt. He appealed to the government to cut spending in areas that did not impact positively on the economic like MASLOC, Ministers of State at the Presidency and Ghana Youth Employment and Entrepreneurial Authority. Dr Assibey-Yeboah said the poor performance of the industry sector was as a result of the crisis in the energy and water sectors and called on the government to fix the problems as soon as possible to help the industrial sector.