By: Franklin ASARE-DONKOH
The National Democratic Congress (NDC) Minority Members in Parliament are wondering why the debt-restructuring policy was shelved.
The Minority Leader, Mr. Haruna Iddrisu addressing the Parliamentary Press Corps on 5th December, 2022 at the Speaker’s Block -Committee Room 1&2 near Parliament House asked “how come contours of this exchange program was not announced in Parliament during the 2023 budget presented on 24th November, 2022”.
The Minister of Finance Ken Ofori-Atta on Monday, 5th December 2022 announced “Major Policy” blueprints on the government’s debt restructuring on domestic debt restructuring promising to announce an extension for debt restructuring in due course.
The Minority Leader who doubles as the Member of Parliament for Tamale South explained that the Minority caucus has been consistent on this matter, saying that they did caution the government about engaging in reckless borrowing.
“How come contours of this exchange program was not announced in Parliament during the 2023 budget presented on 24th November 2022. Will it require legislation? How come that a major policy step of this dimension was not part of his presentation to Parliament?” He enquired.
Mr. Iddrisu further explained while they (Minority) agree that the Government is still negotiating the potential and inevitable International Monitoring Fund (IMF) Program, it is necessary that conclusive Government plans be brought to the House for approval.
This he admitted is consistent with the 1992 Constitution:
(a) The terms and conditions of an IMF Program support constitute a loan and finance agreement under the Constitution;
(b) As implied, any other debt restructuring exercise constitutes a variation of the terms and conditions of past loans authorized by the House;
(c) All loans to support the Budget and Appropriation Act approved by the House, to finance Projects and Programs; and
(d) The House needs to know the socio-economic impact of any loan and program agreements, to the extent that these are not appropriately and specifically espoused in the economic policy section of the Budget.
The Minority Leader hinted that the Bank of Ghana (BoG) is heavily financing the Budget, in open defiance of existing laws and policy approvals by the House.
“I wish to reiterate my call on the Governor to desist from flouting the laws and for him to appear before the House to explain the form and implications of the Central Banks monetary and, not least, its aggressive and defiant fiscal stance,” he stated.
