Lecturer at the Department of Economics at the University of Ghana, Dr. Adu Owusu Sarkodie, has said that Government’s request of some GH¢27.4 billion intended towards the expenditure of the first quarter of 2021 is not misplaced.
According to him, the Government cannot do without certain “statutory payments” and as such, the focus of expenditure in the budget presented by the Minister of Finance in parliament is justified.
Speaking in an interview with Samuel Eshun on the Happy Morning Show, he said: “The expenditure is expected. That is why we have what we call statutory payment. What we can forgo is infrastructural development. So you would observe that he [Ken Ofori Atta] didn’t really talk about it. The things that we are obliged or compelled to pay such as compensation of employees are those that the Government cannot say it won’t pay workers. When it comes to loans, there are usually interests on these loans and the government cannot say it won’t pay. So all these are statutory payments”.
He observed that the Minister’s presentation also had a focus on the GH¢100 billion GhanaCARES (Obaatanpa) programme which is intended to turn Ghana’s economy around considering the effects of the COVID-19 pandemic.
Dr Owusu advised the government not to cut down on their spending because “Government must spend and borrow to help the economy stand on its feet again”.An amount of GH¢27.4 billion has been requested by the Finance Minister from the government intended towards the expenditure of the first quarter of 2021.
The request was made when Finance Minister Ken Ofori-Atta appeared in Parliament on Wednesday, October 28, 2020.
By: Gyamfuah Owusu-Ackom