An Economist at the
University of Cape Coast, Professor John Gatsi, has asked the Finance Minister,
Ken Ofori Atta to provide credible data to support the timelines he has given
for the recovery of the Ghanaian economy against the coronavirus pandemic.
Prof Gasti said the issue of science and data
have become necessary in dealing with the impact of the COVID-19 on the
economy.
Mr. Ofori-Atta recently told the Financial Times
that it may take up to three years for the economy to recover from the impact
of the coronavirus (COVID-19) pandemic,.
“A U-shaped recovery is touted, but ours will
likely be a steep drop, then a two- to three-year downward slide before a
recovery; a trapezoid-shaped recovery!,” he said.
But speaking on TV3’s Mid Day news Friday May 8,
Prof Gatsi said : “Generally, it is a difficult task but we can also appreciate
the fact that because of uncertainties around the Covid 19, issues will be
unfolding, so, we should not be surprised if he comes out today and say that
upon reflection and collecting more data , I (Finance Minister) think that the
economy will come back on track in two years or five years.
“So the whole thing depends on the development
of new issues as it comes to the attention of the finance Minister and the
government.
“But, he should be in the position to provide
reasons and data especially as data issue have become very important. In terms
of managing the covid-19, it depends on the macro fiscal data that we have been
presenting in the past three years and what we are presenting to the IMF.
“So whatever he is going to say whether he is
going to maintain the three years or reduce it or extend it should be
predicated on solid credible data.”
Regarding the assessment of the impact of the
COVID-19 on the economy, Prof Gatsi said the three-day assessment plan by the
government is a step in the right direction.
He said the government, through this assessment
is fulfilling a legal requirement because the Public Fiscal Management Act
requires that by close of May, an update should be provided on the
implementation of the fiscal strategic document.
On Thursday at a press briefing in Accra the
Minister of Information, Kojo Oppong Nkrumah has announced he government has
started a three-day retreat to examine data gathered on the impact of the novel
coronavirus on all sectors of the economy and proffer measures to return the
economy back to its previous state,
Mr Nkrumah said the President has directed all
ministers to examine the impact of the virus on their respective sectors and
provide recommendations on how to bring these sectors back on track.
“The President has instructed all ministers to
report on the impact on their sectors and proffer recommendations for recovery
at the 3-day retreat”, he said.
The minister said the cabinet will then commence
a process of examining data so far gathered on the impact of the COVID-19 across
the governance sectors in the country and have a better understanding of its
impact on all sectors of the economy.
“In addition, the retreat will give the
government the opportunity to put together information for the 2020 mid-year
budget review”, he added.
The government has earmarked GHS600million
stimulus package to assist small and medium scale enterprises (SMEs) in the
wake of the COVID-19.
Prof Gatsi said: “It is important because it is
required by law.
“If you go the Public Financial Management Act,
it is required that by the close of May the government should provide certain
updates regarding the fiscal strategic document.
“Within that fiscal strategic document the
government is required to provide progress reports about the management of the
economy, provide update regarding revenue mobilsation, update regarding the
wage bill to revenue, update regarding public debt to GDP, updates regarding
other macro fiscal indicators.”
He added : “In that requirement the government
is supposed to provide reasons for the deviations and the risks to the economy
going forward so I believe that is exactly what the government is doing.”
Source: laudbusiness.com