Government’s 2015 Budget Projections Unrealistic—Alan Kyermanten

A former New Patriotic Party (NPP) Presidential Hopeful, Alan Kwadwo Kyeremanten has described as unachievable and unrealistic, government’s projections in the 2015 budget statement.

The sky-rocketing inflation, high cost of living, high interest rates, among others, have generated massive opposition from government critics and pressure groups who have organized demonstrations to show their displeasure.

Government had projected that inflation would be kept at about 9.5 percent by the middle of 2014 but the latest figures from the Ghana Statistical Service (GSS) show inflation for the month of October has sky-rocketed to 16.9%.

Explaining why government has struggled to stabilize the economy, Mr. Terkper said the fall in crude oil and cocoa prices on the world market inhibited the implementation of government’s home-grown policies.

The Minister of Finance, Seth Terkper, however said the situation will normalize within three years. But speaking to Citi News, Alan Kyeremanten said government’s target of achieving 11 percent inflation rate by end of next year is impossible. “I think that some of the projections are a bit pessimistic. If you look at the inflation target of 11 percent, that is from 16.9 to 11 percent,looking at the elements of what has contributed to high inflation, I’m not sure that is achievable within a period of one year. Looking at elements such as the depreciating exchange rates of the cedi, even though it is stabilizing, I don’t think that is going be a permanent thing,” he said.

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