2011 Budget is a bold initiative to reduce poverty – AFRO

Alliance for Responsible Opposition (AFRO) on Wednesday tagged the 2011 Government fiscal and economic policy as a bold initiative to reduce poverty and create conditions for mass livelihood and prosperity.

“The 2011 Budget is an attempt to address through pragmatic measures the need to create the condition for progressive redistribution of national economic wealth in favour of the poor and deprived,” Mr Lord Koranteng Hamah, AFRO National Coordinator, stated at a press conference in Accra in reaction to criticisms by the opposition.

Focusing on the specifics, Mr Hamah described the 35 per cent tariff on rice and poultry under the Common External Tariff (CET) as a positive and realistic commitment to boost the local agricultural industry for the creation of sustainable livelihoods nationwide.

“This will be further enhanced by the Export Development and Agricultural Investment Fund (EDAIF), and the Youth in Agriculture programme, the subsidy on fertilizer; concentration on rice and soya bean cultivation and processing of other agricultural products.

“This has the potential of boosting local food production, reducing the import bill on rice and poultry. In the long term, it will reduce food prices and overcome the nutritional challenges of the average Ghanaian,” Mr Hamah stated.

He said AFRO, a pro-government political pressure group, believes that the budget on the theme; “Stimulating Growth for Development and Job Creation,” is an accurate description of government’s vision and had a reflection on all sectors of the economy.

On the educational sector, Mr Hamah said Professor John Evans Atta Mills’ Government had shown strong fidelity with pro-poor interventions such as the national school feeding programme, capitation grant, the free school uniform policy and building of 175 schools to end the intolerable spectre of schools under trees.

“The acceleration of the Community Health–Based Planning Services (CHPS) programme demonstrates a strong commitment towards improving a vital aspect of the social sector of the economy and a sincere recognition of the right to affordable health care; particularly regarding the provision of 30 new CHPS health facilities,” he said.

AFRO noted that these major interventions were made within government’s policy to rely more on internally generated revenues and to reduce reliance on petroleum revenue.

“This we recognise as an ambitious and bold step that requires strong political will and administrative ingenuity. It will place national economic policies and management on a more secure and predictable basis,” Mr Hamah said.

He said: “AFRO is in favour of the collateralisation of oil revenue as a means of addressing Ghana’s infrastructural challenges. It provides the most pragmatic and effective solution to the country’s lagging housing and transportation infrastructure.

“The President Mills’ Budget statement represents the most positive response to national progress within the context of the current global economic slowdown.  We admit the question of the fundamental reformation of the structures and conditions of the national economy still need to be answered.

“But we also recognise the need to defend the positive gains that is being witnessed by all Ghanaians under selfless leadership”.

On the private sector, AFRO noted that it was not the sole guarantor of growth and development…the future of the private sector in the long term would depend on solid economic infrastructure, a well motivated security personnel and a healthy and educated adult population.

“The 20 per cent environmental tax, extension of the talk tax and stabilisation levy, and the airport tax represents a bold attempt to shift the tax burden from the ordinary Ghanaian to the few gainers within the economy.

“The airport taxes for example will increase the cost of imports for the affluent sections of society and not in any way overburden the ordinary Ghanaian,” he stated.

AFRO called for greater transparency and citizen participation in decisions concerning tax exemptions in key private industries, particularly the mining sector, adding; “We insist that the provision of schools and health facilities should favour the more deprived communities”.

AFRO identified the need to accelerate security measures to ensure that subsidised fertilizer was not smuggled out of the country.

“This will be critical in ensuring success of government’s agricultural policy,” it added.

Source: GNA