Analysis of 2023 Budget; what would have been ideal – Financial Economist, lecturer – UPSA, Dr Nene Adams Asafotei writes…

Financial Economist and a Senior Adjunct lecturer at the School of Postgraduate Studies, University of Professional Studies, Accra [UPSA] has been critiquing the 2023 budget statement ahead of the official debate which begins on the floor of Parliament on Tuesday, November 29, 2022.

According to him, measures spelt out to address the current deficit in finances and to stabilize the economy have more questions than answer, a concern he fears may exceed the projected expenditure of GHs205bill.

Dr Nene Adams Asafotei in his write up titled… “2023 National Budget Review & Analysis

A Brief Assessment & Thought’, observed that the 2023 budget may end up creating a defit deficit far and above the GHs61.47bill thereby worsening our primary balance position even the more.

“Out of the total projected expenditure, only GHs28bill is earmarked for CAPEX. This is unfortunate especially that our roads, bridges and drainage infrastructure are in dire need of huge investments.

The monetary policy measures such as using policy rate [increased from 14.5% to 24.5%] to control or contain inflation has not worked well for us. It may sound a little daring to say that Ghana has no monetary policy framework. There is virtually no equilibrium for fiscal and monetary policy regimes which implies that, there is no coordination between the two actors.”…he stated.

The Financial economist explained that policies to contain and tame inflation have never been productive or rather been counter-productive.

“The Bank of Ghana as an institution has been turned into a mere bank for lodging deposits- inflows for government- and withdraw same for expenditure purposes. Indeed, monetary policy is dead in Ghana. This is why you will hear statements like, “you cannot blame inflation on the BoG” or “fighting inflation in Ghana is difficult”. For sure, you cannot eat your cake and have it.”

He among other things has proposed a six point recommendation that would have as he put it been a ‘Great Unity Budget’

These include reformation of key government institutions & SOEs such as COCOBOD, SSNIT, NHIS, GRA, GHAPOHA, TOR, ECG, GWSL, Ghana Gas as well as interventions that will provide relief for the vulnerable and the extremely affected sections of society.