September 28, 2022
  • September 28, 2022

Consult before the time limit for an economy in crisis – Mahama in government

By on February 8, 2022 0

Former President of Ghana, John Dramani Mahama

Former President John Dramani Mahama reiterated his call on the government for an urgent and constructive dialogue among stakeholders to craft a robust set of policy responses to the economic challenges facing the nation before the economy reaches the point of no return.

According to Mr. Mahama, it is undeniable that the Ghanaian economy is going through a deep crisis marked by huge budget deficits, unsustainable public debt, rising inflation, a rapidly depreciating currency, an ever-increasing cost of living. and a loss of confidence from both citizens and international investment communities.

The effects of these, Mr. Mahama said, have been severe hardship and suffering for the people of Ghana, especially those in vulnerable groups.

“Due to the horrific low point we have now reached, it is very clear that urgent intervention is needed to avoid a total collapse of the economy,” Mahama said in a statement.

He lamented that President Nana Akufo-Addo and his head of the economic management team, in a rather “appalling way, remain nonchalant in the face of this grave crisis and have limited their response to the imposition of very harsh and regressive fiscal measures. , one of which is the E-Levy, which has been categorically rejected by the people of Ghana.

Mr Mahama noted that, like someone drowning and clinging to straw to stay afloat, “this government has pinned all its hopes on the E-Levy which, given the gravity and the depth of the problems that have beset our economy, is neither adequate nor viable as a lasting response to the crisis.

The statement said that “in the face of this severe crisis, the government has also resorted to unnecessary policy positions regarding suggestions on how to stem the downward spiral, ensure discipline and help the economy recover. “.

According to Mr. Mahama, it is painfully obvious that beyond the “ill-conceived E-Levy”, the Akufo-Addo administration has “no viable or credible plan of action to get us out of the current economic slump in which they immersed us”. ; meanwhile, there may be collective buy-ins from the Ghanaian people, development partners and the investment community that are ignored.

“How come we don’t have a much-needed post-COVID-19 economic recovery plan that would lay out a firm fiscal consolidation plan in the face of a deteriorating economic situation?” he questioned.

The former president stressed that the government urgently needed to build on his approach to the challenges he faced in 2015.

He said: “We immediately convened the Senchi Economic Forum where we tapped into the brains and expertise of a wide variety of knowledgeable people and stakeholders and built consensus on our economic plan for the future.”

“The knowledge shared in Senchi crystallized in our local fiscal consolidation program, which we eventually presented to the IMF for its support. The IMF fully agreed with our internal strategy, the implementation of which restored the stability of economy and laid the solid foundations that this government, just as the World Bank predicted in 2016, has benefited from between 2017 and 2020.”

Mr. Mahama noted that if not for the profligacy and also the reckless spending related to the elections in 2020, “which undermined all the progress that had been made, our economy would not have taken the catastrophic plunge that it took and left us all left in shock.”

He alleged that the Akufo-Addo administration in 2020/21 received and misapplied the biggest windfall or bailout in Ghana’s history: a $1 billion concessional facility from the IMF, an additional $1 billion in allowance from SDRs, $430 million from the World Bank, $250 million from the Stabilization Fund, 10 billion Gh¢ from the Central Bank, making a total of about 33 billion Gh¢.

He described as a pity that today the entire economic plan of the NPP is based on the adoption of an electronic levy which is expected to bring in just over GH¢6 billion.

He advised the government to swallow what remains of its pride and create a platform for urgent and constructive dialogue among stakeholders with a view to crafting a solid set of policy responses to economic challenges “before reaching the point of no return “. ”

Mr Mahama said the NDC was ready to help in the rescue effort as inaction is not an option in the face of a disaster, adding that “time flies very fast and it is time to to act”.

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