Ghana’s Fiscal Woes
Ghana once again finds itself in the throes of fiscal woes and it is strange and difficult to understand, especially at this time in the country’s economic history. Only a few months ago the country was reported to be among the few countries in the world – not Africa – whose economies were growing faster than normal. What is happening now comes to the average joe then as a dream. And yet government keeps telling Ghanaians that the economy is robust.
Ghanaians have been saddled with some draconian taxes these past few months. Phone conversations are now taxed against the conventional practice in other countries. Hoes and cutlasses for agricultural production are subjected to taxes for a country whose economy is dependent on agriculture. Tariffs on prophylactics, petty as they are, indicate nothing more than desperation, but come to think of it, the president has almost two dozen children, so why not slap a tax on them?
A good portion of industries divested by the government in a program started under a NDC administration are now mere carcasses. Even if they were in production, investors could not afford the cost of raw materials. And that goes for almost every manufacturer in the country. So it is now more logical to import; and with the level of sophistication of the average Ghanaian, imports now outstrip exports putting the country in a constant deficit.
Strangely enough, the spending habit of the ruling government creates the impression that all is well, while its tax policy tells a different story. It is now prudent to send pilgrims to Israel at the expense of the Ghanaian taxpayer. Corruption is eating up the nation and embezzlement of state funds has assumed the glorious title of judgment debt. The massive scale of unemployment of the nation’s youths is a security risk that government has ignored.
Unfortunately, government only listens to its voice. When Dr. Mahamodu Bawumia predicted the consequences of the manner the economy is being run he was called several names. Some even said the renowned economist who has successfully helped normalize worse case scenarios was a quack. And so-called government communicators have become talking heads on radio and television bombarding the airwaves with half truths and absolute lies laced with crass ignorance of what they talk about, especially about the economy. While the NPP left office six years ago government and party officials continue to blame the Kufuor administration for the mess they [the NDC government] have created.
If the measures put in place do not succeed as many have predicted then Ghana risks going back to 1983 when the cedi was devalued 900 percent by the then PNDC dictatorship. Amandla prays it doesn’t happen.
Ghana fo abrε; boys abrε.
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