- March 28, 2022
- Posted by: Amos Ekow Coffie
- Category: Economics
As part of efforts to shore up the Cedi the government must engage local businesses more than they do to expatriate investors in order to reduce the level of repatriation of profit by foreign investors, a Finance and Insurance Analyst, Edgar Wiredu, has said.
He asked the government to see the Ghanaian as an investor.
“When you fail to see the Ghanaian as an investor and welcome people from outside they will carry all the profit away and you will continue to suffer as a country. ” he said on the Key Points on TV3 Saturday March 26, he added “When the Ghanaian is doing well we break him down just to receive a foreigner and make sure he thrives. We do not embrace our own.”
He further noted that the new measures announced by the Finance Minister Mr Ken Ofori-Atta that are aimed at dealing with the economic challenges facing the country are only meant to enable the government achieve the 7.4% deficit target set in the 2022 budget, not necessarily to cushion the suffering Ghanaian.
Mr Ofori-Atta announced on Thursday March 24 that with immediate effect, the government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year.
He said this will affect all new orders, especially 4-wheel drives.
“With immediate effect, Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year. This will affect all new orders, especially 4-wheel drives. We will ensure that the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period,” he said.
“Again, with immediate effect Government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels; Government will conclude on-going measures to eliminate “ghost” workers from the Government payroll by end December 2022;
“Discretionary spending is to be further cut by an additional 10%. The Ministry of Finance is currently meeting with MDAs to review their spending plans for the rest of the three (3) quarters to achieve the discretionary expenditure cuts; ii. these times call for very efficient use of energy resources.
“In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st April 2022,” he added.
“We will pursue a comprehensive re-profiling strategies to reduce the interest expense burden on the fiscal; and liaise with Organised Labour and Employers Association to implement with immediate effect, the measures captured in the Kwahu Declaration of the 2022 National Labour
“Conference, including reforms towards addressing salary inequities / inequalities (e.g. Article 71 Office Holders), the weak link between pay to productivity and the sustainability of the payroll.
“Let me say this, President Nana Addo Dankwa Akufo-Addo has absolutely no intention to roll back on a major policy like Free SHS. We see education as the best enabler for sustainable economic growth and transformation and will do more to improve on it for it to serve more and better our children. All of these measures are aimed at ensuring that we achieve the 7.4% deficit target set in the 2022 budget” Mr Ofori Atta further stated.
But speaking Mr Edgar Wiredu who was not impressed with the measures said these measure are just to enable the government achieve the 7.4 per cent deficit, not to cushion Ghanaians.”
He further said a developing economy like Ghana should not depend on taxes to grow.
“For a developing country you don’t depend on taxes to develop,” he told host Dzifa Bampoh.