In response to the Mid-Year Budget review presented by Finance Minister Ken Ofori Atta, the Ranking Member on the Finance Committee in Parliament, Isaac Adongo, has labelled the budget review as a “dead economy tribute,” expressing his deep concerns about the current state of the nation’s financial affairs.
The Mid-Year Budget review which took place on Monday, July 31, 2023, saw the Finance Minister highlight some purported positive aspects, including moderating exchange rates. However, Isaac Adongo was quick to point out what he believed to be glaring issues that signal a struggling economy.
One of the main points of contention raised by Mr. Adongo was the recent increase in the policy rate. He accused the Governor of raising the policy rate to 30% just three days before the budget review. Such a significant increase in interest rates could have far-reaching implications for businesses and borrowing costs, potentially stifling economic growth.
Furthermore, the MP for Bolgatanga Central drew attention to the alarming rate of inflation, which stood at 42.5%. This soaring inflation rate, according to him, is a clear indicator of an economy in a dire state.
The issue of currency depreciation was also brought to the forefront by Mr. Adongo. He revealed that as of June, the cedi had depreciated by a staggering 29%. A weakening currency can result in imported inflation, making it costlier for consumers to purchase goods and services from foreign markets.
In response to these concerns, the Finance Minister’s assertion that the economy is showing signs of improvement may be met with scepticism from opposition members and other economic experts.
While the Finance Minister remains optimistic about the prospects of the economy, critics argue that concrete measures are needed to address the underlying issues and revitalize economic growth.
