Government Determined To Enforce Directive On MMDAs

Finance Minister Seth Terkper says despite the impending election is 2016, government is determined to enforce the directive on MMDAs not to incur any additional expenditure. 

He said the cause of the budget overrun in 2012 was due to additional payments resulting from the implementation of the Single Spine Pay Policy and other things and not to election related expenses. 

Speaking to Radio Ghana’s Current Affairs Programme “Focus”, the Finance Minister said the decision to revise downward major indicators such as inflation, growth rate and non-oil Real GDP was due to prudence and realistic moves to manage the economy in line with available resources. 

He justified why a growth rate of about 15% three years ago is now struggling to meet a 3.9 percent target.

An Economic Consultant, Dr Kwame Adjei called on the Ministry of Trade and Industry to educate Ghanaians on the need to consume locally made goods and services else it will be difficult for the local currency to compete with other trading currencies.

Also on Focus was a lecturer in Finance at the University of Ghana Business School Dr Lord Mensah.  He said the essence of borrowing is indicative of expansion in the economy. 

He said what is important is evidence of what borrowed money has been used for. 

GBC