President Nana Addo Dankwa Akufo-Addo has rallied Ghanaians to believe in themselves and their capacity to overcome the current economic problems plaguing the country.
He said dark clouds cast shadows that momentarily shielded the vision he wanted, so it should not be a time of despair, adding: “Such times require strength of character, a sense of purpose and a steadfast commitment to the common good.”
President Akufo-Addo made the call during his State of the Nation address to Parliament in Accra on Wednesday (March 8, 2023).
He describes the economic challenge as a phase in the development process, and he believes “this will also happen. We have done it before and we will do it again”.
Present in Parliament for the speech were former Presidents John Agyekum Kufuor and John Dramani Mahama; Chief Justice Kwasi Anin Yeboah; Supreme Court judges, Service Commanders, Chairman of the Council of State, Nana Otuo Siriboe II, members of the Diplomatic Corps and other national figures.
President Akufo-Addo, whose address was heavy on the economy, said that history is full of incidents where countries, at one point in time, were in dire straits.
He touched on the gravity of the economic situation and how quickly the economy will stabilize to rapid growth.
Tracing the trajectory of the current situation, the President said that before the outbreak of COVID-19 and the Russia-Ukraine war, all empirical indicators showed the direction the country was taking.
“I have said, and others, including the Managing Director of the IMF, have also said that our economy was doing well until COVID-19 and the war in Ukraine took us away,” he said.
President Akufo-Addo said the two-pronged crisis caused currency buffeting, inflation was taken up too much and, for the first time in the life of the country, “debt exchange has become the language of everyday conversation”.
He described various government interventions in the health, economic, education, security and livelihood sectors, which demanded a lot of resources when the COVID-19 pandemic emerged.
Fund for COVID-19
In response to recent statements by the Minority that the government was reckless with the funds of COVID-19, the President noted that the economic fallout from the pandemic is widespread and long-lasting, so it is important to show that the funds are not misused.
“It’s critical that we don’t lose the trust of those who the crisis led them to believe that we all together have been abused for personal gain,” he added.
He gave assurances that there was nothing untoward with the funds, and that the responses from the ministers of Health and Finance were sufficient to resolve the questions from the Auditor General’s report.
He expressed hope that an objective examination of the statements of the two ministers would justify the conclusion.
breakdown
President Akufo-Addo gave details of the use of funds to include GH¢518 million in grants and loans for micro, small and medium enterprises through the Ghana Enterprise Agency, through 302,515 companies, of which 60 percent are women-owned, benefited.
He pointed out that the company is suffering due to the pandemic, adding: “For some traders, the receipt of GH¢1,000 makes the difference between household destruction and survival.”
He said that 58,041 health workers were used to augment the existing health sector workforce, noting that subsequently, all of them have been absorbed into permanent health sector workforce.
He added that frontline health workers were also given 50 percent tax relief for the period and wondered what they should regret.
Again, the President stated that all households enjoy free water supply and huge discounts on electricity bills, while economic cushions are provided to protect lives and livelihoods in times of hardship.
“Today, government support for utility bills is considered wasteful, or to use a word beloved of some commentators, ‘profligate’,” he said.
Debt/debt
The president said that beyond the use of COVID-19 funds, there are legitimate questions about how the country’s debt situation is going.
Giving an explanation, he showed that the government was not reckless in borrowing and spending and noted that the debt that was repaid was not only contracted during his administration.
He said the government has spent money on building roads, bridges and schools to train the youth and equip them to face the competitive world.
He explained that looking at the work that needs to be done on roads, bridges, classrooms, furniture and equipment and the number of towns and villages that still do not have access to potable water, “I dare not suggest that we have over-borrowed or spent recklessly”.
Infrastructure
President Akufo-Addo explained that beyond the construction of roads, his government has implemented a National Identification System, with the Ghana Card being the most sought after identification system; built more railways than any other government in the Fourth Republic and established the Zongo Development Fund.
He also pointed out that more than 93 percent of the fiber optic cable built in the country was done in the last five years, with the number of public libraries in the country increasing from 61 from independence to 2017 to 115 in 2022, while more equipment. (vehicles, ammunition, etc.) have been allocated to the security services more than any other government in the Fourth Republic.
e-VAT
The President cited the introduction of e-VAT and e-Invoicing systems which ultimately improved revenue collection.
He cited the example of 19 companies paying taxes on the e-Vat system increasing their monthly sales from GH¢222 million in November 2021 to GH¢720 million in November 2022.
He said in December 2021, the total monthly sales of GH¢284 million will also increase significantly to GH¢1 billion in December 2022.
IMF
President Akufo-Addo praised the Parliament for its support throughout the engagement with the International Monetary Fund (IMF), as well as the passage of the main revenue law.
He pointed out that there are some bills, such as the Income Tax (Amendment) Bill, the Customs & Stamp Duty (Amendment) Bill, as well as the Growth and Sustainability Levy Bill, which are outstanding and require urgent attention. House and passage to complete the previous action.
That, he explained, will make the country ready for presentation to the IMF Board and, more importantly, increase domestic revenue mobilization efforts.
The President said that due to the fiscal and debt sustainability issues facing the government, fiscal adjustment and structural reforms are not enough to restore debt sustainability.
Source: graphiconline.com
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