Mr. Kweku Boateng, an Economics lecturer of the Kwame Nkrumah University of Science and Technology had, prior to the 2019 budget statemnet and Economic policy presentation yesterday, highlighted and explained in plain words, some key elements of the budget.
Speaking on Radford FM Masie Breakfast Show on Thursday morning, Mr. Kweku simply explained a budget as a document which outlines how government plans to spend the money mobilised in the country and from other sources in every sector of Ghana. It also provides an opportunity for the Finance Minister to present how the economy has performed in the previous year, Mr. Kwarteng has said.
Touching on the key elements, Mr. Kwarteng said inflation is the average price increment on goods and services over a period of time. He referred to inflation as the crisis determiner of the working citizens as that determines the value of one’s real income. He also said borrowing by developing economies, especially Ghana is always compelled by the inability of governments to bridge the gab between spending and the available money for the state, which is termed as budget deficit, he was responding to a U-turn on the claim made by the ruling NPP government during 2016 election campaigns, that when it assumed office it wouldn’t borrow.
Also, the Economics Lecturer touched on government’s decision to issue century bonds to finance certain huge projects and infrastructure. He advised that domestic bonds could be more favourable as compared to foreign ones because paying back the principals and the interests of the creditors of the domestic bonds would be retained in Ghana.
Finally on the key elements, Mr. Kweku however cautioned possible inflation rise if government fails to spend and ensure appropriate management of the limited resources as well as make strides towards strenghtening the currency in the coming days.
Rounding off his conversation on the programme, Mr. Kweku charged MPs and District exceutives and other local authorities of both Sissala West and East to continuously lobby and push harder for the deplorable road-networks of Tumu to Wa and Tumu to Bolgatanga to be captured in government infrastructure priorities.