Accra – Ahead of the upcoming budget statement presentation to Parliament for the fiscal year, Mr. Abu Kasangbata, a former Deputy Upper West Regional Minister, has advised Ghanaians to moderate their expectations, considering the challenging state of the national economy.
According to Ghana News Agency, in a statement released to the Ghana News Agency in Accra on Thursday, Mr. Kasangbata emphasized the budget's crucial role as a blueprint for revitalizing Ghana's economy and reigniting hope for a better future. He stressed the importance of this budget in implementing significant changes in the nation's tax system, advocating for reduced tax burdens to foster prosperity and address pressing issues in key sectors like healthcare, education, energy, and manufacturing.
While acknowledging the uncertainty surrounding the realization of these expectations, Mr. Kasangbata called for a collective focus on achieving a more positive economic outlook and improved living conditions. He criticized the current tax structure as an obstacle to economic growth, hindering business development, and urged the government to adopt a more empathetic and equitable approach to taxation.
Mr. Kasangbata highlighted several critical areas needing attention in the budget, including healthcare, education, and the persistent energy crisis that has impacted the country. He underlined the importance of supporting the manufacturing sector, vital for job creation and economic expansion.
Addressing inflation, which was at 38% in September, a slight improvement from August's 40%, is essential for maintaining economic stability, according to Mr. Kasangbata. He also pointed out the concern over the country's debt-to-GDP ratio, which stands at 71.9%, underscoring the need for effective debt management and reduction strategies to ensure long-term economic health.
Additionally, he commented on the complexities added by the monetary policy rate and exchange rate fluctuations, emphasizing the need for steady monetary policy and exchange rate management. Mr. Kasangbata referenced reports from the Institute of Statistical, Social and Economic Research (ISSER), suggesting a 30-40% haircut on Eurobonds, indicating the necessity for debt restructuring.