BY THE FINANCE MINISTER
Hon. Dr. Mohammed Amin Adam, Minister of Finance and Economic
Planning
The Accra Collective of Socialist Movement of Ghana (SMG) has taken notice of the Mid-Year Budget Review presented to Parliament by Hon. Dr. Mohammed Amin Adam, Minister of Finance and Economic
Planning, and wish to contribute to the debate on the budget.
In layman’s terms, a mid-year budget review is an evaluation of the government’s financial performance,
budgetary adherence, and an opportunity to reassess estimates halfway through the fiscal year. The 2024
Mid-Year Budget Review, as presented to Parliament, is shrouded in vague economic jargon that seeks to
paint a picture of progress. However, it is clear that the budget reflects the government’s unwavering commitment to neo-liberal policies that prioritize the interests of a privileged few.
Our public debt continues to soar, now reaching an alarming seven hundred and forty-two billion Ghana
Cedis (GHS 742,000,000,000), representing 70.6% of our total GDP. External debt alone accounts for
60.9% of this total debt, posing a severe threat to the working people of Ghana. These debts are contracted at exorbitant interest rates and under terms that overwhelmingly favor creditors mostly imperialist and neo-colonial forces leaving the Ghanaian taxpayer to bear the brunt with little to no tangible benefits from these loans.
The Akufo-Addo-Bawumia administration has been particularly egregious, having borrowed in excess of
six hundred and nineteen billion Ghana cedis, this is more than what every other government has borrowed in Ghana’s history. This unprecedented accumulation of debt is certainly not a cause for celebration among the working people of Ghana. It is, rather, a stark reminder of the government’s reckless financial policies and its subservience to foreign capital.
The GDP growth rate, touted as a major achievement of this budget review, warrants no celebration. The
GDP growth rate is merely an average of the aggregate total of goods and services consumed by the country.
It is evident that the expenditures of the ruling elite coupled with inflation have skewed this growth,
while the working people continue to suffer despite the proclaimed progress. In any case, a GDP growth
rate of 4.7% for Kwame Nkrumah’s Ghana is not something to rejoice about.
Inflation remains high despite a slight decline, and incomes have not kept pace with inflation, resulting in
a high cost of living that adversely affects the working people of Ghana. Key drivers of inflation, such as
food prices and the exchange rate, continue to rise at a faster rate. Despite the Minister’s claims of declining inflation, the reality for the working people is continued hardship.
The supposed favorable budget deficit and the Finance Minister’s claims of spending within means are
another fallacy. The supposed favorable budget deficit is primarily due to debt restructuring, which saw the government defaulting on some of its debt obligations, Government continues to spend on unnecessary wasteful adventures. One wonders what will happen when Ghana must resume servicing its debts fully in the future.
Expenditure on Free SHS and other social programs has been highlighted as major achievements of the
Mid-Year Budget Review. However, given the significant infrastructural and efficiency challenges in our
high schools, coupled with evident issues including curriculum, logistics, infrastructural, among others in
basic schools, these expenditures are not worth celebrating as social achievements.
While we welcome the government’s decision not to introduce new taxes except road tolls, we continue
to insist on reducing and removing some existing taxes. It is unacceptable, cruel, and discriminatory that
female Ghanaians still pay taxes on sanitary pads in 2024. The E-levy, which Dr. Bawumia has promised
to cancel, remains a burden on Ghanaians, and we further call for its cancellation.
In conclusion, the World Bank poverty report shows that Ghana’s international poverty rate has increased
from 27% in 2022 to 31.4%. This clearly confirms that all the supposed improvements touted in the Mid-
Year Budget Review are at the expense of the poor and to the benefit of the ruling class. The budget review is elitist and an extension of neo-liberalism. We call on the working people of Ghana to continue the struggle towards liberating Ghana from the forces of neo-liberal, neo-colonial, and imperial oppression.
We demand a shift away from these neo-liberal policies that continue to deepen inequality and impoverish the masses. It is imperative to adopt a socialist framework that puts the needs and aspirations of the working class at the forefront, promoting policies that ensure equitable development, social justice, and economic
sovereignty.
Signed.
Blaise Tulo
Convener