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Part One
Part Two
Part Three
Part Four
THE NPP RESPONSE TO THE 2016 BUDGET
STATEMENT, THE 7 YEAR. RECORD OF THE NDC & THE
ALTERNATIVE VISION UNDER AN NPP GOVERNMENT
What was curious about the Minister of Finance’s reading of
the 2016 budget
was that the Minister unusually kept largely quite on tax
increases. Upon a
closer examination of the 2016 budget however, it is clear
that many taxes have
been imposed in the budget to further burden the already
highly burdened
Ghanaian business community and tax payer. These include:
An increase in the capital gains tax from 15% to 25%
In increase in withholding tax on services from 5% to 15%
Re-imposition of excise duty rate of 17.5% on cider and
beer
A new Energy levy for utilities
A new Mitigation levy for utilities
The hardships being imposed on Ghanaians are therefore
continuing unabated
in the 2016 budget. The increase in the capital gains tax
also makes Ghana less
attractive to investors. The 2016 budget is a continuing
story of more taxes,
more cuts in expenditure, more borrowing, higher utility
tariffs, higher cost of
living, less growth and more unemployment.
Also, the 2016 budget is not different from the 2012
election year in the way
government has padded the allocation to office Government
machinery. The
Administration sector is the only subsector to have its
allocation increased by
58.4% whereas some others had negative allocation. General
Government
services also had its allocations upped by 83.7% from the
2015 allocation. For
all intents and purposes, these allocations are general
elections related. For this
NDC government, winning elections has always been more
important than
prudently managing the economy.
USE OF RESOURCES
With the relatively small amount of resources available to
the NPP in 8 years of
government (GHC20 billion fron taxes and loans), the
achievements were
phenomenal. The economy was transformed from a low income
HIPC economy
to a middle income economy during that period. The projects
undertaken
included:
- National Youth Employment Programme –providing
opportunities
and jobs for the youth to get a start in the job market
- The School Feeding Programme to provide food to pupils in
basic
schools
- Capitation Grant to make education affordable and
accessible
- Free Metro Bus ride for children in basic school.
- The National Health Insurance Scheme (NHIS) to provide
accessible
healthcare to the population.
- The National Youth Employment Programme (NYEP)
- Free maternal care for all pregnant women under the NHIS.
- Introduction of a Metro Mass Transit transport service for
urban areas
to provide subsidized transport for commuters and a free bus
ride for
basic school pupils in Ghana.
- Introduction of the Livelihood Empowerment Against Poverty
(LEAP)
programme under which welfare grants are paid to the extreme
poor.
WATER PROJECTS (EXAMPLES)
Cape coast
Tamale
Ada/Sege
Winneba
Barekese system expansion
Weija system expansion
Baafikrom water expansion
Akwapim. Ridge
Akim Oda Water
Koforidua Expansion
New Tafo Rehabilitation
Winneba Expansion
Kwanyaku Expansion
Bawjiase Water Extension
Brimsu Dredging
Sekondi Takoradi Expansion
Kumasi Expansion
East-West Accra Interconnection
EDUCATION PROJECTS (EXAMPLES)
- Basic Education redefined to include Kindergarten
- Construction of campuses for university of development
studies
(UDS) at Nyanpkala, Navrongo, and Wa
- Bolgatanga Polytechnic
- Wa Polytechnic
- Established the University of Mines and Technology at
Tarkwa
- University of Education Winneba granted full Autonomy
- Established Ghana Telecom University
- 38 Teacher training colleges upgraded to diploma awarding
institutions with massive infrastructure upgrade and 15
designated as
science colleges
- 56 model senior secondary schools started and 31 completed
- 130 classrooms for polytechnics
- 31 lecture Theatre halls built at various university
campuses
- Medical school at University of Cape Coast
- Introduction of distance education
- 1,334 New JHS blocks
- 1,331 primary schools
HEALTH (EXAMPLES)
-
- New Hostel & Classroom Blocks for Bawku NTC
- New Classroom, Library, Staff Offices Block for Offinso
MTS
- New Classroom, Library, Staff Offices Block for Kumasi NTC
40
- Rehabilitation of Hostel Block & new classroom block for
KBTH
- New Classroom, Library, Staff Offices Block for Essiama
NTC
- New Hostel Block for Berekum NTC/MTS
- New Classroom Block for Jirapa NTC
- New Classroom Block for Navrongo CHNTS
- New Classroom Block for Kintampo RHTS
- New Classroom Block for Sefwi-Wiawso CHNTS
- New Classroom Block for Cape Coast NTC
- New Classroom Block for Winneba CHNTS
- Rehabilitation of existing Offices and construction of new
office
block for the Pharmacy Council in Accra
- Rehabilitation of Polyclinic for KATH at Kumasi
- Construction of new Kologo Health Centre
- Rehabilitation and upgrade of Twifo Praso Health Centre
- Rehabilitation of Central Medical Stores, Tema
- New Nurses’ block of Flats for KATH at Kumasi
- Construction of new Bawlebeselle Health Centre
- New Hostel Block for Kumasi NTC
- Construction of Doctors’ Block of Flats at KATH, Kumasi
- Classroom Block & Hostel Blocks for Agogo NTC
- New hostel block for Cape Coast NTC
- Remodeling of an abandoned structure into hostel,
classroom,
staff offices for newly created Sunyani NTC
- New hostel for Jirapa NTC
- New classroom block for Pantang NTC, Accra
- New hostel block and rehabilitation of classroom block for
Atibie
MTS
- New hostel block for Navrongo NTC
- Remodeling of existing structure into classroom, staff
offices for
Keta CHNTS
- Remodeling of hostel block for Sekondi NTC
- New classroom block for Ho NTC & CHNTS-
- New Nsawora Health Centre,
- New Abirem Health Centre
- New Asawinso Health Centre
- Rehabilitation of Medical Block at KBTH, Accra
- Completion of abandoned Doctors’ Flats at KBTH, Accra
- Major expansion of Bolgatanga Regional Hospital
- Completion of classroom block at Berekum NTC
- New Classroom and hostel blocks at Bolgatanga MTS
- New Classroom at Tamale NTC
- Construction of new Classroom Block at Ashanti-Mampong MTS
- Epidemiology Block for GHS at KBTH, Accra
- CHIP Compunds at various locations nationwide
- Construction of GHS Office Complex
- Const. of Classroom Blk at Akim Oda CHNTS
- Accident and Emergency Centre, new Mortuary and
rehabilitation of OPD at the Komfo Anokye Teaching
- Clinical Laboratory Improvement Project (CLIP)
- Completion of works at Twifu Praso Hospital
- Completion of works at New Abirem Hospital
- Completion of works at Shama Health Center
- Completion of works at Adabokrom Health Center
- Completion of works at Asawinso Health Center
- Completion of works at Nsawora Health Center
- Construction of Pharmacy Block at La Polyclinic
- Nationwide Dental Facilities
- New offices for the National Health Insurance head office
in
Accra
- Laboratory Automation for 26 Hospitals under the Clinical
Laboratory Strengthening Project
- Rehabilitation of Sefwi Wiawso hospital
- Construction of 4 hospitals at Juabeso Bia, New Edubiase,
Bimbila, Nkwanta,
- Provision of Mobile Dental facilities
- Upgrading of Nursing Training to Diploma awarding
institutions
- Setting up Twifo Praso Nursing school
- Dunkwa on Offin health and nursing training school
- 37 Military Hospital was expanded and considerably
refurbished
- College of Physicians and Surgeons
- National Ambulance System
- Secured €54million Dutch grant for upgrade of Tamale
Regional
Hospital) to Tamale Teaching Hospital
- New district hospitals initiated at Wa, Kumasi South,
Manhyia,
Konongo Odumasi, Adenta/Madina, Tepa, and Salaga.
Polyclinics at
Karaga, Kpandai, Tatale, Buipe, Janga and Chereponi
Road network.
The nation’s road network stood at 37,321 km at the end of
fiscal year 2000,
increased to 56,057 km at the end of 2004, moved further up
to 67,291 km at
the close of year 2008, increased slightly to 68,134 km at
the end of 2012 and
as at the close of December 2014 stood at 71,063 km.
YEAR
AGENCY 2000 2002 2004 2006 2008 2012 2014
GHA 11,122 12,656 12,700 12,786 12,697* 13,344 14,873
DFR 23,999 32,597 38,561 40,671 42,194 42,190 42,190
DUR 2,200 4,064 4,796 9,764 12,400 12,600 14,000
TOTAL 37,321 49,317 56,057 63,221 67,291 68,134 71,063
*Some trunk roads within the cities of Accra and Kumasi and
other major cities ceded to
Department of Urban Roads.
The nation’s road network increased by 18,736 km and 29,970
km during the
four (4) and eight (8) years of NPP-led administration
respectively. At the end
of year 2008 the network size met as at the end of December
2000 has been
increased about 80%.
ROADS AND HIGH WAYS (EXAMPLES -2001-2008)
Accra-Yamorasa
Accra-Aflao
Kadjebi-Pepesu
Manso-Asankragwa
Axim Junction- Tarkwa
Abuakwa - Bibiani
Tinga-Bole
Pantang- Mamfe
Kpando-Worawora/Dambai-
Wenchi-Sampa
Tamale- Yendi
Malam interchange
Mallam-Tetteh Quarshie (N1)
. Jasikan-Brewenkese
. Axim Junction- Tarkwa
Pantang – Mamfe 29.4 km
Tetteh Quarshie Interchange
Ashaiman – Motorway Flyover
Achimota Interchange
Alajo – Avenor
Asafo Interchange
The Accra – Kumasi Highway is divided into 7 sections
Ofankor – Nsawam (17.6 km)
Apedwa – Bunso (22.0km)
Bunso Anyinam (11.5km)
Anyinam – Konongo (89.1km)
Konongo – Ejisu – Kumasi (44.6km)
Achimota – Ofankor (6.3 km) - uncompleted
Nsawam – Apedwa (41.6 km) - uncompleted
The NPP completed 5 of these 7 sections; leaving the
Achimota Ofankor and
Nsawam – Apedwa sections. After eight years the government
has not been able
to complete fully what it was left with.
In spite of the road projects completed by the NDC-led
government on projects
such as Fufulso-Damango-Sawla, Asankragwa-Enchi,
DodiPepesu-Nkwanta,
Awoshie-Pokuase, Tarkwa-Bogoso-Ayamfuri, Ayamfuri-Asawinso,
Burma
Camp and Giffard Roads among others, their lengths do not
add up to 2% of the
nation’s network as at 2014 fiscal year. In fact, the
development of roads in all
the three categories, that is, Trunk, Feeder and Urban has
suffered setback since
January 2009. The Mills-Mahama NDC-led government for the
first four (4)
years in office tarred only 652 km of roads whilst the
Kuffuor-Aliu Mahama
NPP-led government for the same length of time, that is,
between 2001 and
2004 tarred 2598 km of roads. During the second term of the
NPP-led
administration (2005 - 2008) 4413 km of roads were tarred,
all with much less
resources.
ENERGY SECTOR PROJECTS (EXAMPLES)
- Oil Discovered in commercial quantities
- West African Gas Pipeline Project.
- Bui Dam
- June 2007, in response to the energy crisis, a total of
200 megawatts
of generation capacity had already been installed through
the
Emergency Power as well the Mines Reserve Plants of 126 mw
and 80
mw capacities respectively
- various other plants which were initiated, designed,
negotiated and
contracted by the Kufuor government to be installed, and
were at
various stages of implementation. These include the 126
megawattsVRA Tema Thermal 1 Plant, the 50 megawatts Tema Thermal 2
Plant,
the 220 megawatts Kpone Thermal Plant as well as the 126
megawatts
Osono Plant.
- the construction of the 132 megawatts Plant at Aboadze
called
Takoradi 1 Plant was initiated in 2007 as a 220 megawatts
plant by
the Kufuor government.
- The 220 megawatts Sunon Asogli Plant was completed towards
the
end of the Kufuor administration,
OTHER PROJECTS
- Golden Jubilee House or Flagstaff House
- World class stadia rehabilitated in Accra and Kumasi
- New stadia built in Essipong (Takoradi) and Tamale
- Accra-Tema Commuter Railway line
- Peduase Lodge renovation
- Rehabilitation of Tamale, Kumasi and Takoradi airports
- Rehabilitation and expansion works at the Kotoka
International
Airport, Tema and Takoradi Harbours
- Kofi Annan Centre of Excellence for IT
FINANCIAL SECTOR REFORMS
• Bank of Ghana Act 2002
• Monetary Policy Committee (MPC) process – Transparency
48
• Introduction of Universal Banking
• Abolishing Secondary Reserve Requirements
• Banking Act 2004
• Banking Amendment Act 2007 – Offshore Banking
• Long Term Savings Act 2004
• Venture Capital Trust Fund Act 2004
• Payment System Act, 2003
• Foreign Exchange Act 2006
• Anti-Money Laundering Act 2008
• Credit Reporting Act 2008
• Licensing of first Credit Reference Bureau
• Establishment of a Collateral Registry
• Insolvency Act, 2003
• Home Finance Act 2008
• Non-Bank Financial Institutions Act 2008
• Central Securities Depository Act 2007
• Insurance Act 2006 (Act 724)
• National Pensions Act 2008
• Treasury Single Account initiated
• Rural Banking Reforms:
o ARB Apex Regulations 2006 (L.I. 1825)
• Payment and Settlement System Reforms
o Real Time Gross Settlement System (RTGS)
o Central Securities Depository (CSD)
o Automated Clearing House (ACH)
o Cheque Codeline Clearing (CCC)
o Ezwich
• Ghana Interbank Payment and Settlement Systems (GHIPSS)
Redenomination of the Currency which has saved Ghana about
$200 million in
the cost of printing currency so far.
The financial sector reforms resulted in a deepening of the
financial sector and
a situation where banks were chasing customers for loans.
What is clear from the foregoing is that with much less
resources at its disposal
and without oil, the investment in infrastructure under the
NPP along with
social interventions was massive.
With many times more resources than the NPP, the question is
what has the
NDC done with all the resources under its control over the
last seven years? The
NDC has attempted to hoodwink Ghanaians by arguing that the
money has been
spent on infrastructure projects.
The evidence however has exposed this propaganda. The
evidence shows that
notwithstanding the massive increase in the debt stock,
capital expenditure as
a percentage (%) of GDP has actually been on the decline
from 9.1% of GDP in
2008 to 4.1% by 2015. Capital expenditure as a percentage of
GDP averaged
11% for 2001-2008 (without oil) while that for 2009-2015 has
averaged 5.7%
(with oil).This means that contrary to all the government claims of an
increase in
infrastructure expenditure on projects all over the country,
the reality is that
Ghana’s expenditure on infrastructure relative to GDP is
declining. The
numbers indicate that relative to GDP, this government is
investing about half
what the previous government invested in infrastructure. It
is in fact a travesty
that Ghana before the discovery of oil was spending a higher
proportion of its
income on infrastructure investment than after the discovery
of oil and the
massive increase in the debt stock. This decline in
investment in infrastructure
runs counter to what one would have expected.
Indeed, according to the Managing Director of the IMF most
of Ghana’s
borrowing has been used for consumption and not for
investment. The
overpricing of contracts, corruption and the absence of
value for money
considerations is partly responsible for this. For example,
a runway
rehabilitation alone at Kumasi airport cost this country
$23.8 million whereas
a proposed airport at Ho is estimated at $25 million. Was
the runway in Kumasi
paved with gold? When one considers the quantum of borrowed
resources
alone, one can only imagine what would have happened if each
region were
allocated $3billion of the borrowed funds for infrastructure
development.
COMPETENCE
After this sad catalogue of the state of our country, it is
remarkable that the
President will complain about the use of the word
“incompetent” but we
understand that His Excellency the President does not want
us to use the word
“incompetent” to describe the performance of his government.
So we set our
minds to finding out what the NDC government has been
competent at doing in
the last seven years. Actually, we have to admit that this
NDC government is
very competent at the following:
o Mismanaging the economy
o Creating looting and sharing
o Propaganda
o Perpetuating Dumsor
o Increasing Unemployment
o Collapsing the NHIS
o Cancelling teacher trainee allowances
o Cancelling nursing trainee allowances
o Not meeting statutory payments
o Not paying contractors
o Making SADA guinea fowls run to Burkina Faso
o Collapsing Industries
o Collapsing agriculture
o Causing massive exchange rate depreciation
o Massive unsustainable borrowing
o Causing high interest rates
o Failing to fulfil their promises
As a matter of record we want to reiterate that not only do
we say that this NDC
government is incompetent, we also add that the Government
is very corrupt .
But it looks like His Excellency, the President was only
upset about the
incompetence bit and not the corruption, for reasons we have
not yet been told.
But possibly, his failure to protest at this other
description is an acceptance of
the generally accepted belief that he has lost the fight
against corruption.
Transparency International in a report released yesterday
(December 1, 2015)
on Corruption perceptions ranks Ghana as the second most
corrupt country in
Africa. The toxic mixture of incompetence and corruption has
resulted in an
explosion of suffering in the country.
o Teachers are suffering
o Teacher trainees are suffering
o Nurses are suffering
o Nursing trainees are suffering
o Patients are suffering
o Students are suffering
o Traders are suffering
o Pensioners are suffering
o Drivers are suffering
o Contractors are suffering
o Civil servants are suffering
o Farmers are suffering
o Industries are suffering
o Kayayei are suffering
This NDC government has also proven over the last seven
years that it lacks
credibility in the management of the economy. A few examples
will suffice:
- The Government entered an agreement with Printex for
school
uniforms to be manufactured in Ghana. Today, the textile
industry is closing thousands of jobs and the government has reneged on
this agreement
- The government promised the allocation of GHC100 million a
year to
SADA for 20 years. The allocation in the 2015 budget was
GHC25,000,
when we complained, the allocation in the 2016 budget was a
significant zero.
- The government denied that it had defaulted on repayment
of loans to
the AfDB only to be found out by the evidence
- The government denied that it had used the 2014 $1 billion
Eurobond
proceeds to repay Bank of Ghana Debt until they were exposed
by the
facts.
- They promised that dumsor will be a thing of the past in
2013.
- What happened to the understandings reached at Senchi as
contained
in the Senchi Consensus? It turned out, as we knew, to be a
propaganda exercise.
- The government denied that the would seek an IMF bailout
- They are denying that they will lay off civil servants in
2017
- They promised to make Ghana the cleanest country in west
Africa.
Today, according to UNICEF, Ghana has placed second in
cholera
ranking in West Africa with 28,944 cases
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