Former Finance Minister, Seth
Terkper, has called for an amendment of the Presidential Transition Act (845)
to curtail the anxiety about the economy after a change in government and to
help solve future challenges.
“We now have the transition Act
which is good, so you see the handing over notes and other things, but am of
the firm belief that having gone through three transitions, two of them from
one party to the other and the other party succeeding itself.
Either the transitional Act or
Public Financial Management (PFM) should be amended to give an orderly
transition on the economy, Three transitions have been received with anxiety
from both public and private institutions in the country,” he said.
Mr. Terkper, speaking on wide range
of issues about the economy, said: “There is the need for proper transition,
either the Transition Act or the PFM Act (921) ought to be amended. The
current Act predominantly focuses on the political aspect of the transition
process and less on the economy.
He added: “Anxiety about whether my
contractors will be honored and anxiety of public servants not being sure about
what they have to do during the transition. Often the argument about
post-election expenditures has nothing to do with expenditures before or after
elections.
“I realized some of it is the rush
by contractors, suppliers and everybody who want to be paid. A party that is
succeeding itself, as witnessed after the 2012 elections, would find nothing
wrong with it, but not when there is a transfer from one party to another.”
He emphasised that the previous
government worked with a very conscious plan to solve the myriad of economic
challenges facing the country. “We came in facing significant challenges from
power, and through the emergency power the problem has been solved.
He observed that the Mahama-led
administration is leaving behind a well-stabilized economy with bright
prospects, adding that the numbers shows that the Ministry’s
fiscal consolidation programme has worked resulting in inflation reducing
significantly, a fairly stabilised Ghana cedi and a budget deficit which
has reduced from 12 percent to 6.3 percent in 2015.
Mr. Terkper said the current account
deficit has also been going down. “Over the last four years we have been
following a path of fiscal consolidation, which has led to an economy that has
turned around, and the economic indicators points to a clear stabilized
economy”.
Mr.Terkper indicated that but for
the challenges with commodity prices as well challenges on the jubilee field,
things would have been better than what the country witnessed.
He said an instance where due to
some measures put in place to build up the country’s strategic stocks, the
country has not paid any forex loss for petroleum imports for this year.
Mr. Terkper explained that the
Sinking Fund, created for the payment of debts, has a balance of US$300 million
and that it has enough money to refinance maturing debts and bonds.
“As I speak to you now, we have
about 300 million dollars in the Sinking Fund. The first major achievement that
we chalked with the Sinking Fund was to use the money that accumulated to
buy-back US$133 million of the bond that was issued in 2007,” he said.
Mr. Terkper explained that the debt
management strategy of the government has proved productive.
“The buffers we are creating are the
stabilization fund, and I did mention that we have spent US$250 million. As we
speak I believe there is about a US$100 million still in the stabilization
fund.
“The sinking fund because we paid
part of the 10 year bond, it also has some funds. We are building buffers
through the stabilization fund, heritage fund, and through the sinking fund and
debt service reserve account and others, in essence the country is not living
from hand to mouth,” he stated.
He thanked former President John
Mahama for giving him the opportunity to serve the country after leaving the
International Monetary Fund (IMF) in 2009.
Debunking the rumor that, he has a
secured job with the Fund, he explained that he resigned from the IMF to take
up the appointment in the country.
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