Time for creativity to solve the economic crisis – Ofori-Atta

Minister of Finance Ken Ofori-Atta has made a passionate call for creativity and changes in some rules as the government confronts the current economic crisis

According to him, the economic crisis is real and has culminated in a cost of living crisis, high food prices and increased oil costs and tightened financial conditions especially in developing economies.

The 2023 budget, he said, has therefore been prepared within the context of this very difficult economic situation due largely to external economic shocks, domestic debt levels, interest charges and the Parliamentary stalemate on the budget debate last year.

Mr. Ofori-Atta made the call at the post-budget workshop on the 2023 Budget Statement and Economic Policy of the government on Friday, November 26 at the Volta Serene Hotel in Ho, Volta Region

International development institutions, he said, are projecting tough times ahead and stressed this is the time to be brutal with the truth.

He indicated that the global economy in 2023 and beyond puts inflation higher than seen in several decades globally.

“Global growth has been projected to slow down from an estimated 3.2% in 2022 to 2.7% in 2023.”

“The impact of these global shocks together with domestic development has resulted in high exchange rate depreciation, high inflation, rising interest rates, significant fiscal stress, unsustainable debt burden, dwindling gross international reserves at the Bank of Ghana, credit rating downgrades and low GDP growth,” he said.

The Finance Minister argued if there ever was an economic crisis, this is one of them and lamented how these challenges derailed the remarkable turnaround the government achieved prior to the COVID pandemic between 2017 and 2019.

He stressed that macroeconomic stability was largely restored during the time and growth rebounded strongly with the government investing about GH¢28.3 billion in growth-enhancing and employment creation flagship programmes and social interventions.

According to Mr. Ofori-Atta, the 2023 Budget has therefore been prepared to restore macroeconomic stability, promote fiscal and debt sustainability and build resilience for faster economic recovery and protect the poor and vulnerable.

This, he said, is the reason for the theme of the 2023 budget, ‘Restoring and sustaining macroeconomic stability and resilience for inclusive growth and value addition.”

He indicated that government is very clear on the technical interventions but argued in order to rise and build there must be a common language.

He expressed the belief the power of a common language and working together will create the resilience to be able to overcome the crisis.

In his keynote address, Speaker of Parliament, Alban S.K. Bagbin observed that the present economic times and circumstances are extremely challenging and stressed that MPs cannot pretend and dismiss the obvious regarding Ghana’s severely disorientated economic downward spiral.

This, he said, calls for divergence and consensus building on the way out of the predicament and stressed it is imperative for legislators to collectively commit to stabilizing the economic turbulence in the country.

Commenting on the IMF bailout, the Speaker cautioned that the absence of openness and transparency can lead to suspicion and a profound sense of despair and hopelessness.

He, therefore, urged the Ministry and resource persons to muster the courage to be candid, and open and to speak truth to power.

He expressed hope the Finance Minister presented the 2023 Budget in this contest as it will cut out Parliament’s work in its consideration and approval.

He assured the House will interrogate the extent to which the budget provides solutions for the current economic challenges in the short term, and provides a solid basis for a resilient and sustainable medium to the long-term economy.

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