Economic hopes very high as Ghanaians usher in new Prez

Though the country has registered some level of growth, these rates have not translated into much meaningful economic development that will see more jobs being created for the teaming graduates that turnout each year from the country’s tertiary institutions.

 The country had  only touted the impressive growth rates in the macroeconomic front without translating them into productivity.

Ghanaians expected that  with the commencement of oil production,  efforts would be made by this new administration to channel the revenue into the major productive sectors of the economy.

 Another major concern of the business community is for government to hold back inflation and continue to   maintain macro-economic stability while at the same time work to ensure discipline in government’s fiscal regime to avoid unbudgeted expenditures that have characterised most governments there by distorting the economic performance.

But on a much bigger picture, Ghanaians expect the government  to create new growth points  which will serve as both a strong pulling power and foundation for the sustained and healthy development of the country's economy.

 Implementing  proactive fiscal  and prudent monetary policies in 2013 must be the key and operative words of the government while at the same time deepening and transforming  economic growth  pattern.

In doing all these people's initiatives, practices and creativity should be respected in the course of reforms.

A senior researcher, Johnson Asiama  on his part called on the Mahama Government  to exercise fiscal discipline in 2013.

Mr  Asiama,  who is the Director of the Macro-economic Department of the West Africa Institute for Financial and Economic Management, said the Ghanaian government must review its fiscal management of the economy in 2013 by focusing on reforms in budget implementation, both on the expenditure and income sides.

In an exclusive interview with Xinhua recently, Mr Asiama identified the last stages of the implementation of the Single Spine Salary Structure (SSSS) for public and civil servants and attendant demand for 15 percent pay rise across board, and accumulated arrears from the election year spending, as the two potential sources of additional pressure on the public purse in 2013.

"Some of these demands cannot be met without bringing undue pressure on the public purse," Mr Asiama, who is a former Director at the Research Department of the Bank of Ghana, said.

He  therefore called for a reprioritisation of such arrears and review of its spending in the midst of prevailing constraints.

On the income side, the economist also said that there is a need for cost-saving measures and strengthened revenue mobilisation efforts, saying although the Ghana Revenue Authority (GRA) had been making great efforts in that direction, these should come along with enforced compliance.

Indeed, maintaining a low budget deficit, especially in an election year, had been a major concern of the National Democratic Congress (NDC) government, as late President John Evans Atta Mills had ordered a strong memo to be sent to all ministries, departments and agencies earlier in 2012. He said the government would not tolerate any "unbudgeted expenditure and overspending this year."

This was apparently in response to calls to prevent the recurrence of the election year syndrome of fiscal slippage with its resultant post-election effects.

Major concerns include the fear that, after a successful pursuit of re-election, budget deficit could sky-rocket again through excessive spending by government.

The government tamed the country's budget deficit, bringing it down from a high of over 14 percent to the current 7.0 per cent through a series of austerity measures introduced at the start of its tenure in January 2009.

For the first three quarters of 2012, the government's budget execution resulted in an overall budget deficit of GH¢ 5.1 billion (2.68 billion U.S. dollars) or 7.3 percent of Gross Domestic Product (GDP), against a target of GH¢ 4.3 billion  (2. 26 billion U.S. dollars) or 6.2 per cent of GDP.

During the corresponding period in 2011, official records put overall budget deficit at the equivalence of 1.9 per cent of GDP.

The excess, according to Acting Governor of the Bank of Ghana Henry Kofi Wampah, was mainly accounted for by the implementation of the SSSS and arrears clearance which amounted to 1.1 percent of GDP.

Professor Kwabena Asomanin Anamang of the University of Ghana, Legon,  believed that the calls on the government to control spending next year were in the right direction.

"They have to control government spending because the deficit for this year has been high," he urged, adding that fiscal discipline was a central issue that could not be compromised.

Ghana's accelerated economic growth, he said, was likely to continue in 2013 due to the prevailing strong macro-economic conditions in the country.

Additionally, he said, there were positive indications of high post-election dividends in terms of capital inflow into the economy to sustain growth.

"Once the economy grows, tax revenue would also go up; but how to contain the pressures of last year are critical," he stressed.

Before the  swearing in,  Bishop Dag Heward-Mills had  called on the President- elect  to immediately start fulfilling the numerous promises he made that wooed Ghanaians to vote for him. The General Overseer of Light House Chapel International in his Christmas sermon said Ghanaians are so expectant to see him serve the nation.

“We have been here for years, we have seen people come and people go, if you have won power now, concentrate on being a child and servant of Ghana. Serve us; all the things you promised you will do, do them.”, Bishop Heward-Mills declared.

He cited the full implementation of the free universal basic education as well as the free senior high school in 2016.  Bishop Dag Heward-Mills also mentioned the construction of 200 SHS, and the promise by President Mahama to put up teachers’ training colleges in all the regions in addition to a university in the Eastern Region.

He also catalogued among others his promises on SADA, Kumasi jute factory, youth employment, gas pipeline and one time NHIS premium.

“And also you said you will give us a strong currency that would not deflate or inflate between now and two thousand and whatever, which used to be 1:1, it is now to 100 per cent devaluation. So we want strong currency, single digit inflation, and eight per cent GDP growth rate; these are your promises, just implement and serve to us. We are waiting, that is all.”

The obervation is testimony to the high hopes of Ghanaians to see a stable and economic development.