Anchoring Democracy Advocacy Movement Ghana (ADAM-GH), a civil society organization that anchors proper democratic principles, ensures good governance, promotes the rule of law, protects fundamental Human rights and fights corruption, made a categorical statement.
According to ADAM-GH, any government that has had access to over *GHS 500 billion* in revenue within six years and still collapsing the economy to the point of going to seek IMF bailout, must be the worst corrupt government in the history of this world. Without mincing words, the trademark of our President Nana Addo is corruption and mismanagement. Five reasons why covid-19 and Russia Ukraine war is not the cause of Ghana IMF saga and it economic crisis:
1. Ghana’s economy showed signs of serious challenges even before COVID-19 struck. The World Bank’s country director has been emphatic that our economic challenges persisted even before COVID. See https://www.myjoyonline.com/ghanas-economy-showed-signs-of-challenges-even-before-covid-19-world-bank/
For instance, before COVID-19 was recorded in Ghana in March 2020;
I) the Public debt had increased from GHS 120 billion in 2016 to GHS 225 billion, representing a nominal increase of GHS 105 billion in the country’s debt stock;
II) our Debt to GDP ratio had increased from 57% in 2016 to 64% in 2019:
III) Interest payment had increased from GHS 11 billion in 2016 to GHS 37 billion in 2019;
IV) budget deficit had hit 7.5% in 2018 and 7% in 2019 even though the government tried to conceal it from the people by claiming it was 4.8%. It’s instructive to note, that the 2019 budget deficit of 7% was above the fiscal responsibility threshold of 5%;
V) the Ghana Cedi in 2019 saw depreciation of 12.9%. This was before COVID-19. The cedi depreciated by 9.6% in 2016 despite the serious challenges the country was confronted with.
VI) Growth rate for the construction sector had declined from 8.4% in 2016 to -8.5% in 2019 and the manufacturing sector had declined from a growth rate of 7.9% in 2016 to 6.5% in 2019 under the much-touted 1D1F initiative.
2. Even though the COVID-19 pandemic has had some negative effects on Ghana’s economy, its overall impact on tax revenue has been insignificant.
* In 2019 before COVID, the Ghana Revenue Authority raked in revenue of GHS43.9 billion.
* In 2020 when COVID struck, the government projected tax revenue of GHS47.2 billion, revised to GHS42.7 billion and exceeded its revised target by collecting a total of 45.3 billion at the end of the year.
See https://www.graphic.com.gh/business/business-news/gra-exceeds-2020-revenue-target.html
* In 2021, the government projected tax revenue of GHS57.055 billion but recorded a total of 57.32 billion (I.e GHS265 million more projected tax revenue). See https://www.ghanaweb.com/GhanaHomePage/business/GRA-exceeds-revenue-collection-target-for-2021-by-GH-265-million-1446286
3. The Akufo-Addo/Bawumia has had close to GHS 30 billion cedis (equivalent to about US$5 billion) to manage and mitigate the impact of COVID-19, all of which has been largely wasted on election-related expenses. Our peers such as Côte D’Ivoire, Benin, Togo et al, did now get as much as US$5 billion to manage COVID-19 but have done far better than Ghana.
4. The Akufo-Addo/Bawumia government has had revenue from three (3) oil fields with daily production increasing from about 70,000 barrels in 2016 to about 170,000, coupled with high commodity (oil, gold and cocoa) prices on the international market. In all, this Akufo-Addo/Bawumia government has had total revenue of over GHS500 billion in the last five (5) years, as compared to the GHS 200 billion that accrued to the John Dramani Mahama government. Nana Addo economic mismanagement and wastefulness is what has led Ghana into another IMF program.
5. COVID has affected all countries in the world including Ghana. But whereas our peers such as Benin, Togo, Côte D’Ivoire, Burkina Faso, Nigeria etc. were very responsible in how they spent in 2020 to manage and mitigate the impact of the pandemic on their economies, thereby recording deficits of below 7% and Debt to GDP ratios of below 65%, the Akufo-Addo/Bawumia government borrowed excessively and spent recklessly for election-purposes thereby recording a record-high deficit of 15.7% and a Debt to GDP ratio of 78% in 2020.
In the year 2020 when the COVID pandemic struck, Burkina Faso recorded a deficit of 5.7%; Côte D’Ivoire recorded a deficit of 5.6%; Nigeria recorded a deficit of 5.8% and Senegal recorded a deficit of 6.4%. But Ghana alone recorded a deficit of 15.7% because of the reckless election-driven expenses and wastage the NPP-Akufo-Addo/Bawumia government engaged in.
How does COVID and the four (4) months old Russia-Ukraine war leave Nigeria, Benin etc. to attack only Ghana?
Was it Covid-19 or Russia Ukraine that transferred ghc52 billion from GCB to an unknown account? Is it Russia or Ukraine asking this government to share ghc200,000.00 Covid-19 money to each NPP party Executives across the country? From the Ameri scandal, Agyapa to National Cathedral scandals, was Nana Addo under duress by Russians missiles to allow all these? Did Covid-19 or Russia Ukraine authorize President Nana Addo to fly a private jet with Sewaa Broni during covid-19 pandemic in the name of wanting to bathe in the sky? Mr. President please with all due respect be honest to yourself for once for the benefit of Ghanaians. Signed. Azubila Emmanuel Abdul-Salam Executive Secretary Anchoring Democracy Advocacy Movement Ghana ADAM-GH. Contact: 0544428072/0507629533