| |
|
|
|
News |
Get all your
Ghana news, publication and media links
here! |
|
 |
|
|
Press Release
July 14,
2010
Stop this inflation propaganda!
Kwaku Kwarteng
Communications Director
The NDC Government has just rushed to the media to praise
itself for reducing June inflation to 9.52 percent. This is
misleading and unfortunate.
2. The Ministry of Finance & Economic Planning and the
Finance Minister should rather look at why inflation is
falling. If they do that, they will realise that this
reduction in the year-on-year inflation rate is nothing to
rejoice about.
3. Drop in inflation is helpful if it is driven by increase
in production. For instance, if during the maize season,
there is abundance of maize so that the price of maize comes
down, that drop in price is welcome, and the people can feel
it in their pockets because they will spend less to buy an
olonka of maize on the market than they did before. It is
inflation drop driven by such increased production that we
all want.
4. Unfortunately, the inflation drop the government is
boasting about is driven by the refusal of government to
spend, and thereby reducing the amount of money in
circulation. That is of little use. The Finance Minister’s
claim that government spent more in 2009 than the previous
government did in 2008 is a complete lie.
5. According to section 2.2 of the February 2010 Bank of
Ghana report on expenditures, “Total expenditure (excluding
externally financed capital expenditure) in 2009 contracted
by 2.0 percent compared with a growth of 41.9 percent in
2008.”
6. This report is consistent with government’s own figures.
According to paragraph 71 of the 2009 Budget Statement
presented by the NDC Government, total expenditure in 2008
amounted to GH¢9,538.2 million. And on page 31 of the 2010
Budget Statement, a projected expenditure outturn of GH¢8,659.3
million in 2009 is reported.
7. This is easy to explain. Domestic capital expenditure for
example reduced from GH¢1 billion in 2008 to a mere GH¢260
million in 2009 (reduction of 74%). This simply means that
domestic investment in infrastructure such as sports stadia,
roads, housing, schools and others has been reduced by a
whopping 74%.
8. Therefore, the claim by the Finance Minister that
government spent more in 2009 than the previous government
did in 2008 is a deliberate lie. He must retract it and
apologise to the public.
9. If government wants Ghanaians to feel inflation drop in
their pockets, then government has to reduce inflation by
increasing the production of goods and services. Merely
reducing money in circulation by refusing to invest in
infrastructure, refusing to pay contractors and postponing
other payment obligations is no economic management.
Boasting about this and interpreting it to mean that “the
government's Better Ghana Agenda is well on course” is even
embarrassing.
10. This government has to sit up! They should deliver
improvement to people’s lives and stop the pointless
propaganda.
Kwaku Kwarteng
Communications Director
|
|
|
|
 |
 |
 |
Here and now, the
leadership question
Commentary, July 13, Ghanadot
- Good leaders whether present or future will come in
human flesh and attributes. Contrast this to our real
operative philosophy of life expressed daily in our
streets and society ...More
|
|
|
Stop this inflation propaganda!
Accra, July 14, Ghanadot - The NDC Government has
just rushed to the media to praise itself for reducing
June inflation to 9.52 percent. This is misleading and
unfortunate.....More
|
|
|
|
|
|
Vodafone fund for flood
victims raises Over
12,000 from Public
Accra, July 13, Ghanadot - The public have so far donated 12,443
Ghana Cedis to the Vodafone Red Alert for flood victims
initiative, three weeks after it was launched in
Accra.. .More |
|
|
"Chuck"
Kofi Wayo, the gadfly as political “Maradona”
Commentary, July 12, Ghanadot - Since the
dispensation of democracy some 18 years ago, Charles Kofi
Wayo, fondly called “Chuck” in Ghanaian political circles,
brings laughter and humour to the political field anytime
things look too tense.
...More |
|
|
|
|
|
|
 |
| |
SPONSORSHIP AD HERE |
|
 |
|
|
|
