Debates of 25 Nov 2014

MR SPEAKER
PRAYERS 10:20 a.m.
ANNOUNCEMENTS 10:20 a.m.
Mr Speaker 10:20 a.m.
Hon Member, I have a communication from His Excellency, the President.
“21st November, 2014
RT. HON. SPEAKER
OFFICE OF PARLIAMENT 10:20 a.m.
STATE HOUSE 10:20 a.m.
OSU - ACCRA 10:20 a.m.
PRESIDENT OF THE REPUBLIC 10:20 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:20 a.m.
Mr Spealer 10:20 a.m.
Hon Members, Correction of Votes and Proceedings.
Mr Speaker 10:20 a.m.
Hon Members, we do not have any Official Report for correction today.
At the Commencement of Public Business.
Hon Deputy Majority Leader?
Mr Alfred K. Agbesi 10:20 a.m.
Mr Speaker, item number 4.
Mr Speaker 10:20 a.m.
Very well.
Hon Members, before we move to Public Business, I need to recognise some delegation from South Sudan, who are in our midst.
Hon Members, I have the pleasure to introduce to you a delegation from the National Assembly of the Republic of South Sudan who are on a four-day official visit to Ghana.
They are here to share in our experiences in the running of Parliament with particular emphasis on the operations of the administrative structures of our Parliament. The visit is also intended to create the platform to deepen the already cordial relations between the two Legislatures.
The delegation comprises the following:
Hon Jasmine Samuel Adakayi -- Deputy Speaker and Leader of delegation
Hon Charles Wello Onyony -- Chairperson, Members' Affairs Committee
Hon Anthony Kudus Justin -- Member, Members' Affairs Committee
Hon Joseph Ngere Paciko -- Member, Defence and Security Committee
Mr Edward Modesto Apinyi -- Legal Adviser
Mr Allala Younis Loro -- Clerk to the Assembly
Mr Moba Natania Elikima -- Rapporteur.
Hon Members, on your behalf, I wish them a pleasant stay in the country and fruitful deliberations.
Hon Members, item number 4 on the Order Paper -- Presentation of Papers. The following Papers are to be presented: 4(a), (i) by the Chairman of the Committee.
PAPERS 10:30 a.m.
Mr Speaker 10:30 a.m.
Item number 4 a (ii)
By the Chairman of the Committee (ii) Report of the Committee on
Environment, Science and Tech- ology on the Convention on Assistance in the Case of a Nuclear Accident or Radiological Emer- gency (1986).
(iii) Report of the Committee on Environment, Science and Tech- nology on the Convention on Supplementary Compensation for Nuclear Damage (1997).
(iv) Report of the Committee on Environment, Science and Tech- nology on Environmental Chal- lenges in Ghana.
Mr Speaker 10:30 a.m.
Item 4 (b), Chairman of the Committee.

By the Chairman of the Committee

Report of the Committee on Health on the establishment of the United Nations Ebola Response Emer- gency Hub in Ghana.

Hon Deputy Majority Leader?
Mr Agbesi 10:30 a.m.
Mr Speaker, we have item number 6 on the Financial Policy of the Government for the year ending 31st December, 2015. Can we go on with that item?
Mr Speaker 10:30 a.m.
Are we starting with the Chairman of the Committee or the Ranking Member?
Mr Agbesi 10:30 a.m.
That is so, Mr Speaker. We would want to start with the Chairman of the Committee.
Mr Speaker 10:30 a.m.
Hon Minority Leader, where are we starting from?
Mr Osei Kyei-Mensah-Bonsu 10:30 a.m.
Mr Speaker, as we discussed, I do not have any problem if we start with the Majority side, that is from the Chairman of the Finance Committee. After all, it is his Government's policy, and I think traditionally, you have asked the Chairman of the Finance Committee, to more or less, second the Motion as moved by the Minister for Finance. Even though strictly, it would not be a seconding of the Motion as such.
Mr Speaker 10:30 a.m.
Hon Members, is it not time for us to take a second look at that practice? I discussed with the Leadership some few minutes ago --
We have listened to the policy from the Government. I thought we should listen to the Ranking Member -- the Minority Spokesperson, then that prepares the ground for debate.
Yes, Hon Deputy Majority Leader?
Mr Agbesi 10:30 a.m.
Mr Speaker, the Minister for Finance presented the policy, and under normal circumstances, the Ranking Member of the Committee should come and respond to it. So, I think we should listen to the Ranking Member.
Mr Speaker 10:30 a.m.
Hon Members, I am the one trying to see what will be the best practice with regard to these matters.
Hon Deputy Minority Leader?
Mr Dominic B. A. Nitiwul 10:30 a.m.
Mr Speaker, normally, unless we want to deviate, once a Motion is moved, technically, it is seconded, other Hon Members can contribute. But with this particular Motion, unless --
Mr Speaker 10:30 a.m.
Do we have to second it?
Mr Nitiwul 10:30 a.m.
Mr Speaker, if we technically think that we cannot second it, then we can get the Ranking Member to respond to the issues that were raised in the Budget Statement by the Finance Minister, then the Chairman can come.
We do not have a problem. But ordinarily, the Chairman should more or less -- he is not seconding unless -- I believe that he should second the Motion. Even if he is not seconding it, he should speak for us to hear what he has to say, then the Ranking Member will speak, and it goes like that.
But if the Chairman wants to shove that role and give it to the Ranking Member, he is ready.
Mr Speaker 10:30 a.m.
Very well.
Hon Majority Leader, do we ordinarily second Financial Policy Motion? We have to clarify the roles. The Standing Order is not too clear. I want to hear from you.
Mr Alban S. K. Bagbin 10:30 a.m.
Mr Speaker, the practice is that, we do not second a Motion on the Financial Policy for the year. After the Motion is moved by the Minister for Finance, we contribute to the debate. Where it should start from, I thought we had gone beyond that. It could start from either side.
I recall that sometime ago, it started from the Minority side. But most of the times, it is from the Majority, if you go through the years.
As of now, I do not know the difficulty. If we are ready to start, whether it is from the Majority or the Minority side, let us go on.
Mr Speaker 10:30 a.m.
Very well.
Yes, Hon Minority Leader?
Mr Kyei-Mensah-Bonsu 10:30 a.m.
Mr Speaker, as you said, maybe, we can further improve on our own practice.
The relevant provision in the Standing Orders relating to Order 140 (3) provides that, and with your permission, I beg to quote:
“Whenever a Motion ‘That this House approves the financial policy of the Government for the year ending…19. . .” has been moved by the Minister responsible for Finance, the debate on it shall stand adjourned for not less than three days.”
Clearly, on the day the Motion was moved by the Minister for Finance, it is not seconded. As soon as he moves the Motion, it stands adjourned for not less than three days.
But Standing Order 81 also provides that:
“Unless otherwise provided in these Orders, every Motion unless made at the Second Reading or Consideration Stage of a Bill, must be seconded, and if not seconded shall not be debated or entered in the Votes and Proceedings”.
Now, when this Motion was moved, it was not seconded, but it enters into our Votes and Proceedings as having been moved and does not relate to the Second Reading or Consideration Stage of a Bill. That is the difficulty. So, we can go with convention, which has been that we allow it to be debated, or to be seconded by whoever --
Mr Speaker 10:30 a.m.
You have made a very important point. It has been entered in the Votes and Proceedings.
Mr Kyei-Mensah-Bonsu 10:30 a.m.
Precisely.
Mr Speaker 10:30 a.m.
The issue of secondment before being entered into the Votes and Proceedings is neither here nor there.
Mr Kyei-Mensah-Bonsu 10:30 a.m.
Mr Speaker, that was the point I made.
Mr Speaker 10:30 a.m.
So, in this case, it can come from either side?
Mr Kyei-Mensah-Bonsu 10:30 a.m.
Mr Speaker, it can come from either side.
Mr Kyei-Mensah-Bonsu 10:30 a.m.
Mr Speaker, except the practice has been that it has come more from the Majority side than from the Minority side.
Mr Speaker 10:30 a.m.
Very well.
Mr Kyei-Mensah-Bonsu 10:30 a.m.
Anybody can start.
Mr Speaker, we are more than ready.
Mr Speaker 10:30 a.m.
Very well.
We will start from the Chairman.
Yes?
Mr Bagbin 10:30 a.m.
Mr Speaker, it is just to add that Standing Order 81 is very clear. It says:
“Unless otherwise provided in these Orders…..”
So, Standing Order 140 has provided otherwise. That is why after the Motion is moved, it is adjourned for --
Mr Speaker 10:30 a.m.
“Entered into the Votes and Proceedings.”
Mr Bagbin 10:30 a.m.
So Standing Order 81 has been varied by 81 itself. That was why I said the “practice” which you said “convention”, and we will follow.
That is the correct position.
Mr Speaker 10:30 a.m.
Very well.
Chairman of the Finance Committee?
Hon Members, in my discussion with the Leadership this morning, we have decided to give the Chairman and the Ranking Member 20 minutes each.
rose
Mr Speaker 10:30 a.m.
Yes, Hon Member?
Dr A. A. Osei 10:30 a.m.
Mr Speaker, I thought the Business Committee made a recommendation which we adopted. So, I do not know if you are saying that you are repeating the adoption. This is because we agreed in the Business Committee that 20 minutes. So, when you said that in your discussion with the Leadership, you said 20; you are repeating what was decided upon.
Mr Speaker 10:30 a.m.
Well. There are other matters that we have not resolved with regard to the time, So, for now, we will give you and your Chairman 20 minutes.
Dr A. A. Osei 10:30 a.m.
But I thought you were going to increase it?
Mr Speaker 10:30 a.m.
I know where you are coming from-- [Laughter.]
Hon Chairman of the Finance Committee and Member for Ketu North, you have the floor-- 20 minutes.
MOTIONS 10:30 a.m.
Chairman of the Committee (Mr James Klutse Avedzi) 10:30 a.m.
Mr Speaker, I am very grateful for the opportunity to support, speak and contribute to the Motion, that this Honourable House approves the Financial Policy of the Government of Ghana for the year ending 31st December, 2015, which Motion was moved by the Hon Minister for Finance on Wednesday, the 19th of November, 2014.
Mr Speaker, I would like to thank the Hon Minister for Finance for successfully presenting the 2015 Budget Statement to the House. I also thank the Hon Minister for the successes that were chalked in the year 2014, which he presented, that as at September 2014, Government of Ghana had been able to completely migrate all public sector workers onto the Single Spine Salary Scheme.

I would like to thank the Hon Minister sincerely for this achievement. It is not a mean achievement at all. If you are able to pay all the arrears under the Single Spine Salary Scheme and migrate all these public sector workers, it is not a small achievement.

Thank you very much, Mr Speaker for the opportunity.

Mr Speaker, I would like to start my debate with a look at the Global Economic Development. According to the Inter- national Monetary Fund (IMF), October,

2014 World Economic Outlook, performance of the global economy has been slower, and for that reason, they have reviewed the projection of a growth of 3.7 per cent to a growth of 3.3 per cent. If you look at countries like the United States of America, China, Latin America as well as Europe, the growth has reduced completely to an average of 3.3 per cent.

Mr Speaker, if you come to Sub- Saharan Africa, the growth actually remained robust and projected at an average of 5.1 per cent, and then a projection of 5.8 per cent in 2015. For that matter, if the growth of Ghana's economy is projected at the rate of 6.9 per cent, that should be commended; that if the average of the whole world is 3.3 per cent, and the Sub-Saharan African average is 5.1 per cent, and Ghana is far above that average at a rate of 6.9 per cent, we should commend the Hon Minister for the good job he is doing.

Mr Speaker, I would also like to touch briefly on debt to Gross Domestic Product (GDP) ratio. We are always talking that Ghana's debt to GDP ratio is 60.8 per cent, and some people even suggested that we are going back to Highly Indebted Poor Countries status (HIPC).

Mr Speaker, I would just like to give you some data which you can get from the website. In fact, if you go to Trading Economics, www.tradingeconomics.com, you would see the performance --
Mr Speaker 10:30 a.m.
Please, take your time. We would like to get your reference. Let me hear the reference before you move on.
Mr Avedzi 10:30 a.m.
Mr Speaker, yes, the website address is www.tradingeconomics.com. You would see clearly, there is data there. I would like Hon Members to download that data
and look at it and read it themselves. If you look at the debt to GDP ratio of Canada, it is 89 per cent. The Euro area is 90 per cent, France 92 per cent, Germany 76 per cent, India 67 per cent, Italy 132 per cent, Netherlands 73 per cent, Spain 92 per cent, United Kingdom 90 per cent, United States of America 101 per cent, and Japan 227 per cent.
So, if Ghana is around 60.8 per cent, what are we not talking about: why we are directing all our debts to the productive sectors? In fact, if you are borrowing and you are using this money in the productive sector that would continue to generate more resources in order to grow the economy, and therefore, if countries like Japan whose debt to GDP ratio is 227 per cent, and we are not talking that Japan is going to HIPC, how can we be saying that Ghana with 60.8 per cent is going back to HIPC?
Mr Speaker, I would like to go briefly and look at our budget deficit. In 2012, the budget deficit was around 11.9 per cent. In 2013, this deficit dropped to 10.1 per cent, and as at September 2014 the deficit is 9.5 per cent.
Mr Speaker, you can see a trend that the deficit is dropping from almost 12 per cent now to 9 per cent. And the projection for next year is that the deficit will drop to 6.5 per cent.
Mr Speaker, let me refer you to some areas that the Hon Minister talked about in relation to the budget deficit, that if you look at the performance of our revenue sector -- I am talking about domestic revenue. There is an improve-ment because of the measures that the Minister put in place to increase revenue collection.
In 2013, our revenue collection to the percentage of GDP was 15 per cent. As at September, 2014, the revenue collection percentage of GDP is 15.4 per cent. You will see a trend, that there is an effort being made to increase the revenue collection.
Mr Speaker 11 a.m.
Hon Ranking Member for the Finance Committee?

Ranking Member of the Committee (Dr A. A. Osei): Mr Speaker, I thank you for giving me the opportunity to contribute to the Motion on the floor, which seeks to approve the Financial Policy of the Government of Ghana for the year ending December 31, 2015.

Mr Speaker, in the few minutes allotted to me, I cannot cover the entire budget. So, my contribution will cover a broad sweep of what I consider to be important areas of the budget.

Mr Speaker, for a fair assessment of the budget, starting from 2014, one has to ask a pertinent question: What did the 2014 Budget seek to do and did it achieve it?

Mr Speaker, you will recall that the theme for the budget was, and with your permission, I would like to quote from the 2014 Budget Statement, page 4, paragraph (10), line 4:

“Rising to the Challenge: Re- aligning the Budget to meet Key National Priorities.”

Mr Speaker, specifically, the budget aimed to --

Support microeconomic stability. The emphasis is support micro- economic stability.

For accelerated growth, that is what it sought to do.

The third thing it sought to do, was to reduce the public debt.

These are three things that it sought to do. So, the obvious question is, did it achieve these matters?

Mr Speaker, the fiscal deficit, which has been in double digits for two years in a row is projected to be 10 billion cedis in 2014, approximately 9.5 per cent of GDP. By the time the final figures come out, I am sure it would also be in double digits. The cedi has depreciated by 31 per cent against the dollar, 29 per cent against the pound sterling and 26 per cent against the euro.

Mr Speaker, with these economic indicators, can we say honestly that the 2014 Budget supported microeconomic stability?
Dr A. A. Osei 11 a.m.
Mr Speaker, on the question of accelerated growth, until I read the budget, I thought I understood the meaning of acceleration. But by the time I finished, you would see that we have a new definition of acceleration in our budget language.
Mr Speaker, we all know that in 2011, real Gross Domestic Product (GDP) growth was 15 per cent. In 2012, it accelerated to 8.8 per cent. Now, that is the definition of acceleration that we are finding in the budget. Mr Speaker, in 2013, it accelerated downwards --
Mr Speaker 11 a.m.
Hon Ranking Member, which part of the budget did they offer that definition?
Dr A. A. Osei 11 a.m.
My issue is that the budget sought to accelerate growth and the evidence I see is deceleration --
Mr Speaker 11 a.m.
Yes, I agree. But if you are saying that is the evidence, do not go and say that the definition is there. That is the difference.
Dr A. A. Osei 11 a.m.
Mr Speaker, with respect, I do not know -- [Interruption] -- but when the Hon Chairman was speaking --
Mr Speaker 11 a.m.
Hon Akoto Osei, continue.
If you say that, that is the evidence you are getting, you may be right. But when you say the definition is there, that is why I also want to see where the definition is.
Dr A. A. Osei 11 a.m.
Mr Speaker, in 2013, it decelerated or accelerated downwards to 7.2 per cent.
Mr Speaker, 2014, depending on whether you believe the GSS or the Ministry of Finance, it decelerated to either 6.9 or 4.6. Which one is it? Mr Speaker, in any case, there is a deceleration. Even if it went from 7.2 to 6.9, as the GSS is saying. But the Ministry of Finance itself is saying that it does not believe GSS. So, it puts it at 4.6. Again, downward trend.
Mr Speaker, as the Hon Chairman noted, even for 2015, it is projected to decelerate further to 3.9. Mr Speaker, can we say that the budget accelerated growth?
Some Hon Members 11 a.m.
No!
Dr A. A. Osei 11 a.m.
Mr Speaker, the third point is that the budget sought to reduce public debt. Mr Speaker, let me repeat, the budget sought to reduce public debt. Mr Speaker, let me provide you with the statistics:
In 2009, when the NPP Government left office, the debt to GDP ratio was 36.7 per cent -- [Interruption] -- In 2010, it had risen, not reduced, to 37.8. In 2011, it was 39.7 -- it had risen, not reduced. In 2012, it went higher up to 48.03. Mr Speaker, in 2013, it even went much higher to 55.5. Mr Speaker, in 2014, as of September, it is at 60.8 -- [Interruption] -- and that is about 70 billion cedis.
Mr Speaker, I am sure in the English Language, when they say “reduce”, it should be going down. So, clearly, can we say that the budget was able to reduce the public debt? Certainly, not. So, Mr Speaker, if you look at 2014, the evidence is clear that what the budget sought to do, it could not do.
APPENDIX 11 a.m.
O 11 a.m.
Mr Speaker 11:10 a.m.
Hon Members, ordinarily, I did not want anybody to intervene as much as possible, so that the debate can flow.
Hon Member, just a minute. I think that the point you have raised is a very serious one, and I will want to hear from the Hon Deputy Minister for Finance.
Mr Cassiel Ato Baah Forson 11:10 a.m.
Mr Speaker, yes indeed, the point the Hon Ranking Member raised is very important, and it is important to address the matter.
On the same page, it is important for us to notice that the Minister for Finance indicated that by the end of the fourth quarter, we would be able to clear that amount. [Uproar] - Mr Speaker, I am quoting from page 164. We have projected to pay an amount of nine hundred and forty-eight million Ghana cedis for the last quarter. It is important we agree to that.
Mr Speaker 11:10 a.m.
Hon Members --
Have you finished making your point? Please, is it a point of order?
Mr Forson 11:10 a.m.
Yes, Mr Speaker, I come on a point of order.
Mr Speaker 11:10 a.m.
And what is your point?
Mr Forson 11:10 a.m.
Mr Speaker, the point of order is that, the Hon Ranking Member stated something that is very important and of course, it is important that I clarify it.
Mr Speaker 11:10 a.m.
Hon Members, let us hear the Hon Deputy Minister for Finance.
Mr Forson 11:10 a.m.
Mr Speaker, the Hon Ranking Member is misleading this House. I am saying this because, as part of the projections -- we have made on the same page that he read, (page 164) -- that we are paying nine hundred and forty-eight million Ghana cedis for the last quarter and I can say on authority that today, as we speak, some payment has been made. -- [Uproar.]
Dr A. A. Osei 11:10 a.m.
Mr Speaker, the Hon Deputy Minister is a good friend of mine. Nothing out of what he has said defeats what I said. It is their budget and not mine. The statement was categorical. He said as of September, they had not paid anything yet. That was his statement.
I have not gone to projections; I am talking of September. Mr Speaker, if he listened, he would have realised the importance of the point I made. This is because it is not partisan; it a serious matter.
Dr A. A. Osei 11:10 a.m.


Mr Speaker, the National Pensions Act is categorical. It mandates that every employer -- in this case, the Government -- must deduct 18.5 per cent of workers' salary at the end of the month and transfer same within 14 days.

He is the Deputy Minister for Finance. He knows that is the law. I know a good friend of mine, whose name I would not mention, has been jailed for not doing this. The law is clear. So, in this case, if in nine months -- the law says it is 14 days. The Government has not paid. I think it is illegal.

Now, they may adduce all kinds of reasons but I am saying that as Parliament, we must advert ourselves to this difficulty. I know of the precedence.

Mr Speaker, let us look at the point about the Ghana Education Trust Fund (GETFund) on the same page. For the same time period, it was zero. Mr Speaker, the GETFund Act mandates the time lag that should be a quarter in arrears. That is three months. These nine months, nothing has been paid.

Finally, the District Assembly Common Fund (DACF) is a quarter lag. GETFund is a month lag. In nine months, Government has made a zero payment against the Act.

Mr Speaker, I humbly submit that if the Government is not complying with the law, we have the difficulty that if we approve this budget, we would be condoning in the same illegality.

Mr Speaker, we have sworn an oath to defend the laws of Ghana. I think that this House must advise itself when we get --
Mr Speaker 11:20 a.m.
Your time is up. Hon Member, I have added one minute to your time. You started at 10:59am and it is now 11:20am. The Hon Chairman took 19 minutes.
Hon Akoto Osei, please, take your seat. You started at 10.59a.m. and you are supposed to conclude --
Dr A. A. Osei 11:20 a.m.
With respect, I started at 11.02a.m. and the Hon Deputy Minister for Finance took some of my time.
Mr Speaker 11:20 a.m.
He did not take more than a minute.
Dr A. A. Osei 11:20 a.m.
He did.
Mr Speaker 11:20 a.m.
He did not.
Hon Member, conclude.
Dr A. A. Osei 11:20 a.m.
I thank you, Mr Speaker.
In conclusion, I would want to borrow from my good friend, our vice presidential candidate, who has aptly summarised this budget. In his view, the questions Ghanaians would be asking --
With his permission, I would want to borrow a few questions from him. Mr Speaker, what he says is that, Ghanaians would be asking the following questions:
“Will the budget for 2015 grow the economy?”
Dr A. A. Osei 11:20 a.m.
Will the budget reduce the cost of doing business?
Dr A. A. Osei 11:20 a.m.
Will the budget create jobs?
Dr A. A. Osei 11:20 a.m.
Will the budget stop corruption?
Dr A. A. Osei 11:20 a.m.
Mr Speaker, will the budget end the ‘dumsor dumsor'?
Dr A. A. Osei 11:20 a.m.
Will the budget transform the economy?
Some Hon Members 11:20 a.m.
No!
Dr A. A. Osei 11:20 a.m.
Mr Speaker, I thank you. [Uproar.]
Mr Speaker 11:20 a.m.
Hon Members, a debate on the Financial Policy of this country is a very serious business. Let us try as much as possible to listen to one another. The noise will not advance the course and the image of this House.
The shouting and the screaming are not going to add to the value of this House. The people that we represent expect better from each and every one of us here. Heckling, if it is reasonable, is allowed; but when it goes beyond the ordinary, then it is something else.
Hon Minister?
Minister for Employment and Labour Relations (Mr Haruna Iddrisu) (MP) 11:20 a.m.
Mr Speaker, let me thank you for the opportunity to associate myself with the Motion, which was ably moved by the Hon Minister for Finance, Seth Emmanuel Terkpeh, that this House approves the Financial Policy of the Government of Ghana for the year ending 31st December
2015.
Mr Speaker, in doing so, let me respond to a number of issues. Indeed, the theme for the budget -- I have heard reference to the 2014 theme as compared to the 2015 theme and Mr Speaker, with your permission, I beg to quote page 6:
“Transformational Agenda: Secu- ring the Bright Medium Term Prospects of the Economy.”
Mr Speaker, this is a candid admission by Government and the Minister for Finance, that to secure the medium and long-term, we would need to acknowledge the problems associated with the short- term and the extent to which we correct the short-term, secures us the bright medium-term prospects.
Let my Hon Colleagues on the opposite side of the aisle question that Ghana's medium-term prospects are not bright; let them say so.
They know that the Hon Minister for Finance indicated that the 2015 Budget was significant in two respects; one, it was ushering in a gas and oil economy with an assurance of increased production of oil and gas, which would certainly contribute to the growth of the economy.
rose
Mr Speaker 11:20 a.m.
Yes, Hon Ranking Member?
Dr A. A. Osei 11:20 a.m.
Mr Speaker, I was here when the Minister for Finance spoke. He did not say he was ushering in an oil and gas era. He said he was ushering in the second phase -- He did not say oil and gas. He said the second phase. So, he is misleading the House.
Mr H. Iddrisu 11:20 a.m.
Mr Speaker, the Hon Minster said increased oil and gas production, which guarantees the medium-term prospects. Indeed, a bright one.
Mr Speaker, my challenge was that, let him contest that the future prospects of the economy and the country are not bright, given that there would be increased production.
rose
Mr Speaker 11:20 a.m.
Do you have a point of order?
Dr A. A. Osei 11:20 a.m.
Yes. Mr Speaker, I would want my good friend to quote me correctly.
The debt servicing I quoted was not 9.9 million; it is 9.9 billion cedis. He should quote me correctly.
Mr H. Iddrisu 11:30 a.m.
Mr Speaker, this is largely to drive home the point that, there may be a moderate r isk to debt sustainability. But the Hon Minister for Finance has sought to answer it with the establishment of the Ghana Investment Infrastructure Fund. I will come to it. But to remind him about public debt, let it be said that this Government borrowed to support infrastructural development in this country.
Mr Speaker, they issued bonds for the gang of four roads -- Ofankor roads --
gang of six -- A good decision. They did so because they wanted to improve mobility within the country and we will not question their judgement on that.
But Mr Speaker, if we have borrowed, you see ongoing works at the Tamale Airport. It is from borrowed funds. Kasoa Interchange also from borrowed funds; Circle Interchange, from borrowed funds; Kumasi Market, which would soon take off, is also from borrowed resources; Sofo Line, from borrowed resources. We are paying for Bui -- over 293 million at their time but a good investment in terms of adding to energy generation.
So Mr Speaker, his argument on public debt, he ought to let the Ghanaian public appreciate that this Government is delivering on the infrastructure deficit of the country, which currently stands at GH¢2.5 billion per annum. Mr Speaker, to correct it, is what the Hon Minister for Finance has done.

But Mr Speaker, because I come from Tamale, let me use the Tamale Airport as an example. We do not expect the Consolidated Fund to pay for the Tamale Airport. The Airport Company, on the capacity of the US$ 25 million on an on- lending agreement, will pay for it. [Hear! Hear!]-- That reduces potential debt distress. It is this Hon Minister for Finance who initiated it.

Thanks to the support of Parliament. The Ghana Infrastructure Investment Fund (GIIF) has been established. And it is a service to support State owned enterprises to borrow on account of their balance sheets.

Mr Speaker, the simple economic principle behind it is to reduce the burden on the Consolidated Fund. So, tomorrow, when he is doing his calculation of debt service analysis, he would be freed of the burden of offloading many of these borrowed money unto the Consolidated Fund.

Mr Speaker, therefore, through this august House, some resources have been allocated for the take-off of the GIIF and I believe that the House must be asking more questions in terms of us ensuring that we honour our obligations by this.

Mr Speaker, we have also been told that this Budget Statement failed to deal with growth. I have heard a brilliant argument about deceleration.

Mr Speaker, let me urge him to open to page 7 of the Budget Statement in particular, paragraph 21, that attributed to the slow growth, is the world economic outlook.
Some Hon Members 11:30 a.m.
Di wo fie asem.
Mr H. Iddrisu 11:30 a.m.
Indeed, Mr Speaker, in West Africa, it has been worsened by the Ebola threat to which the Hon Minster acknowledged that many of the economies would not do well because of the associated health problems in those areas.
Mr Speaker, it is important that there were a number of policy decisions that contributed to the depreciation of the cedi. I also heard arguments about it against other major currencies of 31 per cent. Those decisions have since been reversed and the cedi is showing strength against major currencies.
Mr Speaker, during the presentation of the Budget Statement, our Hon Collea- gues opposite -- how I wish that tomorrow, they would be bold and courageous to show the same placards in red: “Reduce petroleum prices”, on the
assumption that prices of petrol were lower in the world market.
Mr Speaker, they will not have the courage to say same, that “increase petrol prices” if the prices were increased. They will not do so. Mr Speaker, let them undertake to do same tomorrow in the unlikely event that prices go up.
Mr Speaker, never in our country's history have we dealt head-on with a problem of Government continuing to subsidise budget arising out of expenditure management in respect of petroleum. Never!
But under the Hon Minister for Finance, we have made some fundamental gains, and part of the reason, which they know -- Mr Speaker, to remind him, it was the same Hon Dr Anthony Akoto Osei, former Minister of State who raised the question here when the Hon Abu Jinapor came to answer a Question.
Mr Speaker, I beg to quote him with your permission; he asked
“Is he aware that Government owed BBC GH¢ 400 million and some US$ 200 million?”
Mr Speaker, precisely, this is the reason Government is taking advantage of the prices in the world market, to deal with a subsidy challenge for the economy of Ghana. [Hear! Hear!]-- That is why Government would not immediately reduce prices of petroleum products. This is because if we did, we would lose the opportunity to correct some of the threats that would imbalance the economy.
Mr Speaker, I add, the theme for the Budget Statement is “…Securing the Bright Medium Term Prospects …” is to admit that on many of the macro targets, we have not met them. But it is a commitment by Government to honour them in order to correct the short-term challenge, which is both fiscal and budget deficits. That is the candidness of the Hon Minister for Finance. He intends to correct the fiscal challenges in the short-term in order that he can secure the long-term.

Mr Speaker, I can go on and on. It is also remarkable to note that for the first time in our country's history, prices of cocoa were adjusted upwards and the producer price went above 62.74 per cent for 2014 and 2015.

Indeed, Mr Speaker, to quote the exact figures for 2014 and 2015 for the cocoa farmer, this is about the best Budget Statement ever presented. [Hear! Hear!] This is because we are preserving for the cocoa farmer -- Since when have we adjusted cocoa prices the way he did with the Ghana Cocoa Board (COCOBOD)? Show me when. Mr Speaker, today, cocoa prices in Ghana are as competitive as those in Ivory Coast or even better.

Mr Speaker, it explains our commitment to the “Better Ghana Agenda” ably being pursued by the Hon Minister for Finance.

Mr Speaker, we also, in this Budget Statement, have said that we would mitigate through some social interven- tions which were mentioned by the Hon Minister for Finance. I think that we ought to support this.

Let me conclude, finally, Mr Speaker, once again, on expanding revenue and the objection by the Minority. Mr Speaker, my Hon Colleagues know that for fiscal prudence, we have two options. We either look at revenue or fiscal discipline in terms of public expenditure management.

Let me assure him that the Minister for Finance and Government, through the Ghana Integrated Financial Management and Information System (GIFMIS), is improving public financial management. Indeed, there would be an improved payroll management, which would assure the very problem that he pointed out in his debate.

It would mean that we would tighten controls of payroll management and deal with the undeserving who may be on the payroll; that would be done and I give him the assurance. We would honour our obligations per the law.

Mr Speaker, I also heard him eloquently quote the law. Mr Speaker, it is not in my character to keep reminding him, because I do not look backwards; that is past. But he knows that he supervised re-aligning the budget. He did so because of the contemporary challenges that confronted him. As the Minister for Finance, he had to realign for the payment of Ghana Education Trust Fund (GETFund) and payment of the District Assemblies Common Fund some years ago.
rose
Mr Speaker 11:30 a.m.
Hon Member for Old Tafo?
Dr A. A. Osei 11:30 a.m.
Mr Speaker, I would want to remind him that the story he is telling is not correct.
Mr Speaker, at the time, Hon Yaw Osafo- Marfo was the Minister for Finance and Hon Boamah, now, the Minister for Communications, was a student. He came to the Ministry of Finance to remind Hon Yaw Osafo-Marfo that they could not see the money for GETFund.
Hon Osafo-Marfo came to this House to plead with us to allow him to pay over a period of time. He came and asked for permission. This is not the same thing. Where is the permission? He came with a formal application. They must be glad that I have brought it to their attention.
Mr Speaker 11:30 a.m.
Hon Minister?
Mr H. Iddrisu 11:30 a.m.
Mr Speaker, this is the first time I have seen my Hon Colleague want to stand alone. He knows that in this matter, he cannot stand alone.
The Hon Osafo- Marfo belonged to a political system and a Government of which he was a part. But Mr Speaker, I am raising this, so that --
Mr Speaker 11:40 a.m.
Hon Minister, as much as possible, you should not personalise the issue. You may refer to a Government but not to personalise the issue.
Mr H. Iddrisu 11:40 a.m.
Mr Speaker, I am rightly guided and I should be concluding.
We have also heard that this Budget Statement is not business friendly --
Mr Speaker 11:40 a.m.
Hon Minister, conclude --
Mr H. Iddrisu 11:40 a.m.
Mr Speaker, may I refer you to paragraph 155 where the Hon Minister proposes to establish the Ghana Exim Bank -- an import and export bank.
We know that the economic headwind of the private sector of Ghana is access to credit and the cost of credit. The Hon Minister seeks to correct this through the establishment of the Ghana Exim Bank in order that some resources would be made available to support the private sector.
Mr Speaker, this is part of the reason we should support the approval of this Budget Statement, because we need to assure the private sector of the availability of financial resources, so that they may not need to borrow at 23 per cent or some higher interest rate. I am sure the Exim Bank would be the game changer for the private sector in our economy.
The Hon Minister also hinted --
Mr Speaker 11:40 a.m.
Your time is up; your last sentence --
Mr H. Iddrisu 11:40 a.m.
He hinted on an economy consistent with his transformation agenda being an export led economy, enhancing the promotion of made-in-Ghana goods.
Mr Speaker, with these few words, I support the Motion.
rose
Mr Speaker 11:40 a.m.
Hon Minority Leader?
Mr Kyei-Mensah-Bonsu 11:40 a.m.
Mr Speaker, with respect, I really differed to the Hon Minister but this is to say that the Hon Minister spoke for nineteen minutes. [Interruption] -- He spoke for nineteen minutes --
Mr Speaker, that is according to my time.
Mr Speaker 11:40 a.m.
Hon Minority Leader, with the greatest respect, I used the time here. I called him at 11.24 a.m. and at 11.39 a.m. I asked him to conclude -- [Uproar.] Hon Minority Leader, I am using the time on my microphone here. Look at the time on your microphone. It is 11.41 a.m. now on my microphone [Interruption] -- It is11.41 a.m., please --
Mr Kyei-Mensah-Bonsu 11:40 a.m.
Mr Speaker, that is what I referred to
Mr Speaker 11:40 a.m.
I have decided to use this time because I believe that if it is properly synchronised, everybody would be using the same time, so that we can be looking at it.
Mr Kyei-Mensah-Bonsu 11:40 a.m.
Precisely --
Mr Speaker 11:40 a.m.
Yes.
Mr Kyei-Mensah-Bonsu 11:40 a.m.
Mr Speaker, sound the time an Hon Member is to begin so that we are clear in our minds, with respect to the Chair.
Mr Speaker 11:40 a.m.
Well, I am in charge of proceedings here. I have told you what time I am using. You can check the time when you want to.
Mr Dominic B. A. Nitiwul (NPP-- Bimbilla) 11:40 a.m.
Mr Speaker, thank you very much for the opportunity to contribute to the Motion.
Before I say anything, I would want to thank you for the wise counsel you gave today. This is because I wanted to raise the cocaine issue and I would be coming tomorrow.

How on earth can anybody carry this 12 kilograms? Mr Speaker, this is 12 kilograms. How on earth can anybody carry this through an airport and nobody could catch the person? Two kilograms and ten kilograms in a hand bag. Mr Speaker, ten kilograms in a hand bag. [Uproar.] So, Mr Speaker, tomorrow, the Statement will come --
Mr Speaker 11:40 a.m.
Hon Deputy Minority Leader --
Mr Nitiwul 11:40 a.m.
Mr Speaker, the Statement will come tomorrow.
Mr Speaker 11:40 a.m.
Hon Deputy Minority Leader, I am surprised at your approach this morning. You were in my Lobby this morning and I had discussions with you in the presence of other Leaders and I told you that if you would want to raise any issue on that subject matter, come with the Statement or a Motion, so that it can be properly debated. You told me that you would bring a Statement.
I will not want this debate on the Financial Policy to be hijacked for any other purpose. You left my Lobby and promised that you would bring a Statement. I was waiting for the Statement
and it never came. Instead of the Statement, you were carrying something in your hand [Uproar.] -- Whatever it is, I do not know and I will want to say that it does not show respect at all -- [Uproar.] -- to the mutual discussions that we had. After leaving, if you had changed your mind, nothing prevented you from drawing my attention to the fact that you had changed your mind.
There is a way of doing it. We have usual channels of communication and I do not want - With the greatest respect to all of you in this House, let us use the rules of the House. [Interruption] -- Let us use the rules of the House.
Hon Alban S. K. Bagbin -- rose --
Mr Nitiwul 11:40 a.m.
Mr Speaker, thank you --
Mr Alban S. K. Bagbin 11:40 a.m.
Mr Speaker, it is a duty of Leadership to support the Speaker to maintain law and order in the House. So, Leadership should not do anything on the floor of the House to ignite disorder. [Interruption] --
Mr Speaker, if this had been done by any Hon Member, particularly backbenchers, I would not get up to talk [Uproar.] -- But the Deputy Minority Leader -- Definitely, I think it is proper that I draw our attention to this, because what he did would neither benefit the Minority nor the Majority -- [Interruption] -- neither would any one benefit from what he has done. [Interruption] -- I can assure him that in the minds of Ghanaians, sticking cocaine on the Majority would never stick. [Hear! Hear!] -- Never; the innuendos --
Mr Speaker, as we stand here, if any Hon Member was ever arrested with drugs, it is from the other side. [Uproar!] -- and not our side. Not our side. So, it is wrong for him to have done this on the floor of the House. [Uproar.]
Mr Kyei-Mensah-Bonsu 11:50 a.m.
Mr Speaker, while we are at this, I would want to remind ourselves that the Hon Deputy Minority Leader who started his presentation at 11.42 a.m. has been interrupted since 11.43 a.m. up to now. [Interruption] -- That is the first point.

But Mr Speaker, what bolder message could be registered than he pulling out the quantum of the cocaine? [Hear! Hear!] What bolder message could register than what he has done?

Mr Speaker, I also heard the Deputy Minority Leader talked about the issue and he did not mention any political party. If we want to go into political parties and personalities who have perhaps, indulged in this, we have known the wife and son of a Speaker who was involved in cocaine dealings --
Mr Speaker 11:50 a.m.
Honourable --
Mr Kyei-Mensah-Bonsu 11:50 a.m.
The wife and son of a Speaker of this House. So, who is talking about cocaine dealings in this House? [Uproar.]
Mr Speaker, I am sorry, but I thought that we would not go on this path at all. He has not mentioned anybody at all. So, I am surprised people want to wear the hat --but nobody has mentioned any political party.
Mr Speaker, I believe, having witnessed what has been done, you may end this aspect by allowing the Deputy Minority Leader to conclude.
Mr Speaker 11:50 a.m.
Hon Members, this is not -- I will want to suspend proceedings for 10 minutes and I want the Leadership of both sides of the House to meet me in the Speaker's Lobby.
Some Hon Members 11:50 a.m.
Cocaine! Cocaine!
11.53 a.m. - Sitting suspended.
12.15 p.m. — Sitting resumed
Mr Speaker 11:50 a.m.
Hon Deputy Minority Leader?
Mr Dominic B.A. Nitiwul 11:50 a.m.
Mr Speaker, you know that as members of Leadership, and this House in particular, and with your goodself steering the ship, I had a gentleman agreement with you about the fact that the cocaine issue that has engulfed this nation over the last one week, was a serious matter and Parliament needed to take a bipartisan approach to ensure that we debate the matter on the floor.
An Hon Member 11:50 a.m.
You were moved by the spirit.
Mr Nitiwul 11:50 a.m.
Mr Speaker, being moved by the spirit—[Laughter]—and with reference to you, I was hinting and thanking you for your wise counsel and saying that I will bring the Statement tomorrow. You agreed admitting it for us to debate it tomorrow. But what I did was to send a teaser to the people of Ghana and particularly you, that this is what was
Mr Bagbin 11:50 a.m.
Mr Speaker, first, I would want to withdraw honestly all that I said in response to the surprise statement and action of the Deputy Minority Leader. I apologise to you, Mr Speaker and also to my colleague Members of Parliament.
Mr Speaker, let me add that we have a story and in that story, there is a fine song. That song goes like this:
“Ka nie mang tu, mang tu Zampri prilam Ka nie mang gmi mang gmi Zampri prilam”.

Mr Speaker, it simply says, like boxers, if one gets a heavy knock, he must reply with superior force —[Laughter]— So, if the person insults you, you insult back. I think my action was ignited by the improper positioning of the statement that the Deputy Minority Leader wanted to make. This is because what we are doing, is debating the budget. If the Hon Member had made a Statement on this matter, which is a national issue, it would have been properly taken by the House. But to introduce it in his contribution to
Mr Speaker 11:50 a.m.
Hon Minority Leader?
Mr Kyei-Mensah-Bonsu 11:50 a.m.
Mr Speaker, the integrity of this House must be protected by all of us and I was also lured into the fray by the rather uncharacteristic response by the Majority Leader.
Mr Speaker, let me say emphatically that the statement that I made had nothing to do with the current crop of Speakers at all.
Thank you very much.
Mr Speaker 11:50 a.m.
Hon Members of Leadership, I thank you very much for your understanding and the way we have to resolve this issue.
If the Statement is submitted to me, I will look at it and if it is consistent with the rules of the House, I will make sure that we work on it for the Statement to be made on the floor of the House.
I also want to take this opportunity to inform all Hon Members that there is nothing in our rules that talks about “teaser” — [Laughter]—I have never come across it in any Standing Orders in all the Parliaments that I have visited in my over twenty years of parliamentary practice.
The people of Ghana are expecting us to debate the Budget Statement and Economic Policy of the Government of Ghana, with the hope that at the end of the day, their living conditions would be better and that is a task entrusted to both sides of the House, and we must apply ourselves to that task to the best of our abilities.
Hon Deputy Minority Leader, you have the floor.
Mr Nitiwul 12:25 p.m.
Thank you very, very much for now giving me the floor to begin my contribution to the Budget Statement.
Mr Speaker, the budget that we are debating today, was presented against the background of a deteriorating economy -- the fundamentals are very weak, and I would attempt to answer the question posed by the Minister for Employment and Labour Relations when he asked that do we believe that the future or the middle to long-term prospects of this nation are bleak?
Mr Speaker, in my estimation, with the current management of the economy, my answer would be, yes, and a big yes, of course.
Mr Speaker, when in 2014, there was a sharp deterioration of the exchange rate, the cedi deteriorated not less than 31 per cent against the dollar; rising corruption with the President himself setting up and instructing various agencies to ensure that allegations of corruption are unearthed by my good Colleagues here through the Public Accounts Committee (PAC) and other bodies.
Mr Speaker, rising cost of doing business. The business communities have complained that there is rising cost of doing business in Ghana, particularly over the last one or two years.
I visited Frankies yesterday to have a personal experience to see before I debate today, and I can say that the complaint by the workers was that, I should look at the number of people who turned up and that over the last two years, the business environment had been extremely very, very bad.
Mr Speaker, they have closed the first floor where they used to sell pastries; they have collapsed the lounge, and have compressed it into a single thing because business is very bad. And this is not just Frankies, but many other businesses are collapsing on daily basis, resulting in our people losing jobs. So, the long-term prospects are not good at all.
Mr Speaker, in this nation, for the first time, we have an Association of Graduate Unemployed People. It started last year, and it is continuing this year. Serious unemployment, especially for young people. You cannot have a nation that you think the fundamentals are strong and you have serious unemployment. People are not getting jobs.
We churn out graduates on daily basis and they have nothing to do. The economy is contrasting instead of growing. Mr Speaker, so, I say that the middle to long-term prospects of the nation is bleak, when we cannot get job for our young people.
Mr Speaker, we had unprecedented Central Bank Financing of the Government policies. In 2012, the budget deficit was 12.8 per cent. In 2013, it was over 10 per cent and we are heading towards another double digit budget deficit, which is unprecedented in our history. In fact, the largest budget deficit we ever had in our history until this Government came, was 6.8 per cent, which was recorded in 2008.
We have never, as a nation, crossed the 10 percentage point mark. But consistently, 2012, 2013 and we are going to 2014, Mr Speaker, we are crossing double digit budget deficit. Why? Why? Mr Speaker, why?
Is that the sort of management that the people of Ghana expect this Government to give us? Obviously, no. Why would anybody expect me to believe that the middle to the long-term prospects of the country are good? They are simply not good.
Mr Forson 12:35 p.m.
Mr Speaker, my very good Friend is misleading this House.
I am saying this because as we speak, we do not have iced water tax, we do not have condom tax and if we do, I would like him to point to the very Act that established iced water tax. It is not true we are overtaxing the people.
Mr Nitiwul 12:35 p.m.
Mr Speaker, is it not true that in this very House, we passed a Bill into an Act that taxed condoms? Very soon, they will tax sex. That is what they will do because that is the only thing left. At least, what can make a human being enjoy themselves, they will tax that one too. Mr Speaker, we advised them not to tax pharmaceuticals but they did -- [Interruption.]
rose
Mr Speaker 12:35 p.m.
Hon Majority Leader?
Mr Bagbin 12:35 p.m.
Mr Speaker, the Hon Deputy Minority Leader should go and paste for using that phrase.
Mr Nitiwul 12:35 p.m.
Mr Speaker, that is the light side of it, so, I will forgive him.
We advised this Government not to tax pharmaceutical companies but they did. Today, they have brought this budget to say they now agree with the Minority and are withdrawing it. We advised them not to tax condoms but they disagreed and at the end of last year, they withdrew it in July through the Mid-year Review Budget.
rose
Mr Speaker 12:35 p.m.
Hon Minister for Finance?
Mr Terkpeh 12:35 p.m.
Mr Speaker, I am aware that you want the debate to flow but it is very important to let the House know why we had to withdraw the earlier budget. The
Mr Nitiwul 12:35 p.m.
Mr Speaker, I thought he was going to say that they were not going to tax fertiliser but now, he has said they were going to tax fertiliser.
We told them not to tax mobile handsets, they refused, they did. Today, they have come back to say they are withdrawing it and they are going back to the people to say they have done well. They have not done anything; they have only increased the prices and they will not come down. They will not.
Today, if you buy an item for about GH¢1,500.00, it is not going to come down because you caused it in the first place by taxing it. Mr Speaker, we told them not to tax real estates because the moment you tax real estates --
Mr Speaker 12:35 p.m.
Hon Deputy Minority Leader, your time is up.
Mr Nitiwul 12:35 p.m.
Oh! Mr Speaker!
Mr Speaker 12:35 p.m.
Hon Deputy Minority Leader --
Mr Nitiwul 12:35 p.m.
20 minutes?
Mr Speaker 12:35 p.m.
15 minutes, you started at 12.24 p. m., it is now 12.39 -- 15 minutes.
Mr Nitiwul 12:35 p.m.
Mr Speaker, I will conclude.
Mr Speaker 12:35 p.m.
Conclude.
Mr Nitiwul 12:35 p.m.
Let me ask the questions that were left out when Dr Bawumia asked -- The Ranking Member did not ask them. Will this budget improve the living conditions of teachers?
Some Members: No!
Mr Nitiwul 12:35 p.m.
Will this budget improve the living conditions of Mr Speaker?
Some Members: No!
Mr Nitiwul 12:35 p.m.
Will this budget improve the living conditions of Members of Parliament?
Some Members: No!
Mr Nitiwul 12:35 p.m.
Will this budget improve the living conditions of Police Officers?
Some Members: No!
Mr Nitiwul 12:35 p.m.
Will this budget improve the living conditions of Journalists?
Some Members: No!
Mr Nitiwul 12:35 p.m.
Will this budget improve the living conditions of any Ghanaian?
Some Members: No!
Mr Nitiwul 12:35 p.m.
Thank you, Mr Speaker -- [Hear! Hear!]
Mr Speaker 12:35 p.m.
Hon Deputy Minority Leader, remove my name from the list. Do not drag me into the debate.
Mr Nitiwul 12:35 p.m.
Mr Speaker, I have removed your name.
Mr Speaker 12:45 p.m.
Hon Deputy Minister for Finance?

Deputy Minister for Finance (Mr Cassiel A. B. Forson): Thank you, Mr Speaker, for the opportunity to contribute to the debate on the Motion to adopt the Financial Policy of the Government of Ghana for the year ended 2015. In doing so, I would like to concentrate on the need for us to stabilise the economy.

As was heavily articulated by the Minister for Finance during his Budget Statement to Parliament, he projected a total revenue representing 24 per cent of GDP and also projected a total expenditure representing 30.5 per cent of GDP.

Mr Speaker, it is very important for us to understand that out of the total revenue, 18.8 per cent of GDP represents revenue that relates to tax expenditure. It is also important for us to relate our performance regarding total revenue from tax, to that of our peers. Our peers are doing between 20 per cent to 22 per cent of GDP. This shows clearly that as a country, we would have to work extra hard to mop up more revenue to finance our expenditure.

I ask myself a very simple question. What we need to achieve as a country, is macroeconomic stability. Obviously, the stability would mean that businesses would flourish and interest rates and inflation would come down.

Mr Speaker, let us all understand that as a country, we would have to do everything possible to mobilise internally generated funds. I ask myself, when my Colleagues from this side obviously asked why we are implementing the Special Petroleum Tax -- Going back into history, I remember in the 80s, Ghana as a country, used to tax cocoa farmers through export duty. The export duty was a major source of revenue for this country. I ask myself one question, what is the alternative? Are we going back to re-impose taxes on the

cocoa farmer? Obviously not because the cocoa farmer has paid his dues and it is now time for all of us a country, to pay our dues, to stabilise this country, to move this country forward and to ensure that the companies in the private sector can succeed. And if companies succeed, it means jobs would be created, interest rates and inflation would come down.

Mr Speaker, this budget aims at ensuring that there is sound macro- economic stability and that is why this budget was prepared, using macro- economic stability as an anchor.

In conclusion, I ask myself, that indeed, our Colleagues from the other side are saying that this budget does not provide hope. I challenge them in the sense that this budget did present hope. It presents hope in the sense that, one, the country is going to benefit from macroeconomic stability; and two, as a result of macroeconomic stability, com- panies would flourish, jobs would be created.

Individual Ghanaians, the man on the street who is complaining of unemploy ment will be able to get employ-ment because companies would succeed. And if companies are succeeding, it means this country is going to grow.

Mr Speaker, I would like to say that this budget aims at ensuring there is sound macroeconomic stability and that is why this budget was prepared, using macroeconomic stability as an anchor.

Mr Speaker, in conclusion, I ask myself that indeed, our Hon Colleagues from the other side are saying that this budget does not provide hope. I challenge them, in the sense that, this budget did present hope. It presents hope in the sense that, a country is going to benefit from macro- economic stability. As a result of macro- economic stability, companies would flourish and as a result, jobs would be created.
Mr Speaker 12:45 p.m.
Hon Second Deputy Minority Whip. That is the last contribution for the day.
Mr Ignatius Baffour Awuah (NPP -- Sunyani West) 12:45 p.m.
Thank you, Mr Speaker, for giving me the opportunity to contribute to the debate on the floor.
Mr Speaker, in doing so, I would want to take us through memory lane. When I came to Parliament first in 2009, my first opportunity to listen to the President of the nation then -- I am referring to the late Prof. Mills. He came here and in addressing us, at a point in time, he had to refer to our national debt. He used the phrase pepeepe ¢ 95 trillion as the debt that we had then.
Mr Speaker, it was GH¢ 9.5 billion but the late President chose to call it pepeepe 95. At that time, the total debt as I said was GH¢ 9.5 billion. The debt to GDP was 36 per cent. Mr Speaker, we were servicing our debt then -- Especially external debt by GH¢ 694.7 million and a domestic debt servicing of GH¢481.9 million.
Mr Speaker, what do we see today? Today, our total debt is roughly GH¢70 billion -- pepeepe 700 trillion. Mr Speaker, within a space of six years, we have moved from ¢95 trillion to ¢700 trillion. In new cedi terms, we have moved from GH¢ 9.5 billion to GH¢ 70 billion.
That notwithstanding, it is also projected in this budget, that the fiscal gap for this year is going to be GH¢9.8 billion. If the fiscal gap is going to be financed with loans, then by the end of 2015, our debt should not be less than GH¢79.5 billion. Mr Speaker, the debt is now 60.8 per cent of GDP. After growing from 36.3 per cent in 2009 to 48 per cent in 2012, it is now 60.8 per cent of GDP. On on, on, we go.
Mr Speaker, the debt of GH¢70 billion is made up of domestic debt of GH¢40.6 billion and external debt of GH¢29.04 billion. The implication of this is that, we are borrowing more from domestic sources than from external sources. We are clubbing out the private sector and depriving them of loans and credit that they can use to expand their businesses.
Mr Speaker, it is therefore, not surprising that growth within the private sector was so low within the period under review. The hotels grew by a -2.7 per cent. There were negative growths in some other aspects of the private sector because they are not getting the necessary funding to expand the sector.
Mr Speaker, what is even more worrying is the structure of our debts. As I said, we are borrowing more from within than from without. The estate industry grew at a -2.7 per cent; the hotels and restaurants industry grew at -1.5 per cent and the manufacturing sector, which
should actually drive your economy also grew at - 8.0 per cent.
This means that, our people are not getting work; the cost of borrowing is high; low productivity; low employment and in fact, there is lack of innovation on the part of our banks because they can easily lend to Government and make more money without actually being innovative. Such is the economy that the NDC Government has bequeathed to the people of this country.
Mr Speaker, when the Minister for Finance came here, he was so bold and proud. He told Ghanaians and mentioned so many projects that he had funded with funds from loans. Some of them are non- existent as we speak. He mentioned Kumasi Central Market project and Military Hospital in Kumasi as being funded from loans.
Mr Speaker, I would want to ask the Minister for Finance of the GH¢ 40 billion that he has taken from domestic sources. He should mention one project that he has funded with that particular loan. He should mention it; this is a challenge I am throwing to him.
Mr Speaker, it is true that some of our external loans are earmarked for specific projects but the majority of loans which are of domestic nature are not earmarked to any specific project. I would want to challenge the Minister to come out with the list of projects that he has funded from domestic sources. Indeed, that also is the majority of the credit that we have taken.
Another problem that I have with the budget is the structure of our economy. Mr Speaker, we are told that service contributes 50.2 per cent; industry contributes 29.24 and agriculture contributes only 20.6 per cent to GDP.
Mr Speaker 12:55 p.m.
Hon Majority Leader.
Mr Alban S. K. Bagbin 12:55 p.m.
Mr Speaker, reading the mood of the House, after such a hectic debate, I surmise that this is the proper time to adjourn the House to tomorrow. I beg to move, that we do adjourn to tomorrow, when we can continue with the debate on the Financial

Policy of Government and other business of the House.
Mr Osei Kyei-Mensah-Bonsu 12:55 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
ADJOURNMENT 12:55 p.m.
  • The House was accordingly adjourned at 1.01 p.m. till Wednesday, 26 th November, 2014 at 10.00 a.m.