Mr Speaker, thank you for the opportunity. Because of time, I would like to touch on a few things I deem extremely important.
My friends on the Minority side have raised a number of issues or
commented on some extracts from the Mid-Year Budget Review, particularly, our debt portfolio as a country. Surprisingly, in terms of respective performances, in considering trend analysis or comparative analysis, at all times, they have performed worst in our history.
Mr Speaker, I would give the basis. Between 2000 and 2004, our debt portfolio was increased by 52.53 per cent. From 2004 to 2008, it increased by 23.66 per cent; from 2008 to 2012, it increased to 286.96 per cent. [Uproar!] -- And between 2012 and 2016, it was by 234.43 per cent. Mr Speaker, during the eight-year period of the first NPP Administration, we increased our debt portfolio by just 46.98 per cent [Hear! Hear!] -- Meanwhile, the immediate past NDC Government's eight years increased the debt portfolio by 1,148.29 per cent [Uproar.].
Mr Speaker, the astonishing factor is that we are confronted with the COVID-19 Pandemic. Worldwide they know that in terms of trade activities, industrial activities and productivity, there are issues and therefore, these are the key performance parameters of any GDP growth on the globe. Even with outlier issues, we have performed far better than them. Even in their own document -- the Press Release that they did --
They quoted that in 2020 our debt portfolio was getting to GH¢291,614 million, a percentage of 142.22 per cent. Even that one is better than their two regimes. So, I am surprised at the mathematics that went into their calculation.
Mr Speaker, I would not even try to heap scorn on their ability to explain issues. Let us understand the fact that trying to harmonise the key performance parameters of all budget statements in the world; our revenue, our outlays or expenditure, the difference gives us a surplus or a deficit. When we have a period in which our productivity, revenue generation and trade performances are so low and industries underperform their benchmarks which we cannot attribute to the doing of any Government, definitely, our Gross Domestic Product (GDP) would not grow alongside our expenditure. Once we have problems of naturally not getting revenue generated through taxation, we would be actually restricted to borrowing. The Government would have no other alternative. They have been asked severally, but they tell us to go and beg.
Mr Speaker, I have never seen any economic policy in the world which is called “begging policy”, except with the National Democratic Congress
(NDC). Even if we are refused, what would be the point? He talked about revenue, but what is the revenue about? All that we are saying is that it is possible that they would one day come to power, so, they should take their time and learn from us because I think that they really do not understand the mechanics of harmonising key performance indicators of the budget allocation.
Mr Speaker, one interesting area that the Hon John Jinapor, my Hon Colleague from the Minority side talked about was the minimum wage. He said that our minimum wage as against our inflational rate does not give us any good picture, and he was so emphatic. I am shocked, and I wonder if he has done a historical analysis of their performance. In the
year 2016, the minimum wage was around GH¢8, and inflational rate was 15.4 per cent. However, inflational rate today is about 7.8 per cent. In fact, our minimum wage is over 12 per cent. All that we are saying is that with the mid-year budget and the economic performance of this Government, if we were to even develop any lead table, the NDC would go on relegation. [Hear! Hear!] This is because they cannot be compared to us, and these are facts. They are their own figures.
Mr Speaker, the key factors to consider in developing any economic framework is the primary micro- indicators. In fact, the NDC's Government policy rate is even bigger than the lending rate today, and that is unprecedented. It was around 25.5 per cent, but now we would get about 20.7 per cent. So, I am surprised at the way they speak.
The fact of the matter is that we need to understand -- in fact, I am not a legal practitioner, but even section 18 of the PFM Act of 2016, (Act 921) states emphatically without any debate and ambiguity that even in times such as these, three conditions; war, natural disaster and health epidemic, we are supposed to even in consultation suspend our fiscal policies and rules. So, with what we are experiencing today, even by the