Minority demands new government budget for "economic challenges"

Company News of Wednesday, March 20, 2019

Source: citinewsroom.com

2019-03-20

The minority in Parliament is demanding a new budget from the government, which is tackling the current difficulties in the country.

According to Minority Finance spokeswoman Cbadiel Ato Forson, it has been proven so far that the budget presented last November was upset and could not handle the vulnerabilities of the economy, as the show the exchange rate and other economic indicators.

Ato Forson asked the government, at least, to come before Parliament with a statement in which he announced critical political changes that would improve the prospects of the economy.

"The rapid decline in the value of the cedi has plunged the economy into disarray and the forecasts surrounding it as reflected in the 2019 budget. This has undermined confidence in the economy, which is also sending signals wrong to the investment community. It calls on the government to take urgent measures to restore the economy. "

"The starting point is that we should consider a new budget taking into account all the distortions and serious problems caused by the fall in the value of the cedi. At a minimum, we are waiting for a statement in Parliament that rebadures the country of the measures taken by the government to address the instability of the economy. The budget as presented by the Minister of Finance can no longer be invoked. Its credibility and stability have been completely undermined by the cedi, "he added.

The cedi has depreciated against the dollar of 4.9 to 4.5 G since the beginning of the year, raising concern among the business community, among others.

In 2018, the cedi is depreciated by 8.4% against the dollar.

In 2015, the three-year loan agreement between the government and the International Monetary Fund (IMF) provided for the freeze of jobs in government departments, with the exception of those falling under the authority of the government. education and health.

The agreement also stipulated that the government limit the nominal increase of the wage bill to a maximum of 10%.

Amortization in Cedi: "We should get by" – Ofori Atta

Finance Minister Ken Ofori-Atta said last week that the free fall of the cedi against major foreign currencies, especially the dollar, would be reduced in the coming weeks.

He added that the government is expecting a new capital injection, such as the $ 750 million Standard Bank bridge loan, to face the challenges the Cedi is currently facing.

State intervention in the short term

The government expects a new capital injection, such as the $ 750 million Standard Bank Bridge Loan, to meet the challenges currently facing the cedi.

The government is also considering COCOBOD funds and the launch of the $ 3 billion eurobond.

The cedi has depreciated against the dollar from 4.9 to 4.5 G since the beginning of the year.

Finance Minister Ken Ofori-Atta commented on the government's short-term decision: "We're going after; $ 300 million, $ 600 million and $ 750 million and $ 3 billion, and [I think] it should be fine. And all this should happen in the next two or three weeks.

But the minority in Parliament called these measures unsustainable.