A Lecturer's Verdict: Dr. Ato Forson's Budget Statement Gets Thumbs Up
A lecturer at Bolgatanga Technical University, Awineyesema Abiire Awineyesema Abiire, has given a resounding endorsement to Finance Minister Dr. Ato Forson's budget statement, describing it as a testament to the Mahama government's intellectual prowess. Abiire's commendation comes after Dr. Forson presented the budget statement to Ghanaians on Tuesday, outlining the government's financial plans and policies.
In a detailed analysis, Abiire praised the Finance Minister's presentation, stating that it proves the government has "men with brains". He noted that despite some of his expectations not being met, he would still rate the Economic Document as the best in a decade.
Abiire's praise was not limited to the budget statement itself but also extended to the government's overall economic strategy. He commended the proposed VAT reforms, which he believes will see expansive growth in businesses and enhance compliance. He also welcomed the reduction of the Tax Refund account from 6% to 4%, describing it as a prudent way of stopping ongoing abuse and public financial misapplications.
Furthermore, Abiire supported the increase in the Growth and Sustainability levy from 1% to 3%. He argued that a country whose natural resources do not take care of it is a "demonic state controlled by cynical criminal leadership". This statement highlights the importance of ensuring that Ghana's natural resources benefit its citizens.
Another significant aspect of the budget statement that Abiire praised was the commitment to dedicate 80% of the District Assemblies Common Fund (DACF) allocation to Assemblies. He noted that this is a plus, but also emphasized that it does not comply with section 173 of the Local Governance Act, 2016 (Act 936).
Abiire also welcomed the dedicated funding for the Free SHS Program, which has been a significant challenge for the government in recent years. He praised the proposed amendment of the Petroleum Revenue Management Act, which will see District Assemblies benefiting directly from petroleum receipts.
In addition, Abiire commended the government's efforts to bring an end to the "kelewele" approach to borrowing, proposing a prudent and planned management of public debts and guarantees. He noted that this approach will eventually lead Ghana to adopt a public financial management strategy similar to that of Ethiopia, known as RIS (Recognize, Improve and Sustain).
However, Abiire also sounded a note of caution, reminding the government that the budget is just an input document. He emphasized that until the seven pillars of Public Expenditure and Financial Accountability (PEFA) mechanisms are followed, the output document (Auditor-General's report) may still be littered with financial malfeasance and recidivism.
In conclusion, Abiire's endorsement of Dr. Ato Forson's budget statement is a significant vote of confidence in the government's economic strategy. While there are still challenges to be addressed, Abiire's analysis suggests that the government is on the right track. As Ghana continues to navigate its economic challenges, it is clear that the government's commitment to prudent economic management and transparency will be critical to its success.
*Timeline of Events*
- Tuesday: Finance Minister Dr. Ato Forson presents the budget statement to Ghanaians.
- Wednesday: Abiire releases his analysis of the budget statement, praising the government's economic strategy.
- Thursday: The government begins to implement the budget statement, with a focus on prudent economic management and transparency.
*Recommendations*
- The government should continue to prioritize prudent economic management and transparency.
- The government should ensure that the seven pillars of Public Expenditure and Financial Accountability (PEFA) mechanisms are followed to prevent financial malfeasance and recidivism.
- The government should continue to engage with stakeholders, including civil society and the private sector, to ensure that the budget statement is implemented effectively.