Mr Abu Kansangbata, a former Deputy Upper West Regional Minster has cautioned Ghanaians to lower their expectations in the forthcoming budget statement to be presented to Parliament for the fiscal year.
He said: “we must not overlook the current state of our economy, which is currently not displaying a favourable outlook”.
In a statement copied to the Ghana News Agency in Accra on Thursday, Mr Kasangbata said the paramount importance of the budget statement served as a comprehensive roadmap for rejuvenating the Ghanaian economy and renewing of collective hope for a brighter future.
He said ‘as we anticipate the release of the forthcoming budget statement, our hopes, must rest on the realization of tangible changes in our nation’s taxation system. The focus should be on lightening the tax burden, fostering prosperity, and addressing critical issues in healthcare, education, energy, and the manufacturing sector”.
Mr Kasangbata said while the realization of the expectations remained uncertain, hopes for a brighter economic outlook and improved living conditions should be the clarion call of Ghanaians.
He said the current tax structure was seen as a roadblock to economic growth, hampering businesses’ ability to thrive and urged the government to introduce a more compassionate and balanced approach to taxation, facilitating the nation’s journey towards prosperity.
The former Deputy Minister mentioned healthcare, education, and the long-standing energy crisis that continued to plague the nation as major issues that needed redress.
“Additionally, our crucial manufacturing sector, with its pivotal role in job creation and economic growth, should receive the attention it rightfully deserves in the budget.Inflation has been a concern, with a rate of 38% in September, though showing a slight improvement from August’s 40%. Addressing inflation is crucial to maintain economic stability”.
He said the debt-to-GDP ratio, at 71.9%, raised concerns about sustainability and managing and reducing the debt burden was vital for long-term economic health.
“The monetary policy rate and exchange rate fluctuations add complexity to the situation. A steady monetary policy and exchange rate management are essential for economic stability. Reports from ISSER suggest a 30-40% haircut on Eurobonds, reflecting the need for debt restructuring”.
