2001 budget is a foundation budget- Nduom
2001 budget is a foundation budget- Nduom
Accra (Greater Accra) 04 April 2001
The 2001 budget is a foundation- building one meant to stabilise the nation's economy for the long-desired take off, says Dr Kwesi Nduom, Minister of Economic Planning and Regional Co-operation.
"It is not a risky budget that will put the economy into jeopardy", he told a workshop on the state of the economy in Accra on Tuesday.
"The economy inherited by the new government was found to be very weak because it was based on a huge component of borrowing resulting in a huge debt and loss of focus in economic management", Dr Nduom explained.
The workshop was organised by the Joint Consultative Forum (JCF) on the topic: "Is the 2001 budget a step in the right direction?"
The JCF comprises the Ghana National Association of Teachers (GNAT), Civil Servants Association (CSA), Ghana Registered Nurses Association (GRNA) and Judicial Service Association of Ghana (JUSAG)
Other speakers were Mr Smart Chigabatia, Chairman of JCF and Mrs Grace Coleman, MP for Asokore.
Dr Nduom said the budget tries to ensure that government handles fiscal policies in a way that it does not stay in the borrowing cycle.
"It is in this direction that we have made debt management a priority item and opted for the Highly Indebted Poor Countries (HIPC) initiative."
He said HIPC takes care of the nation's external debt situation and helps to initiate moves to plan a new poverty reduction programme for the country.
Dr Nduom said the government is negotiating with local banks on the possibility of converting the percentage of domestic debt owed them into long-term bonds.
A decision, he indicated, would be out in the next four weeks.
Dr Nduom said there would be no growth whatsoever, "until we take care of the debt situation we find ourselves in."
He said HIPC is one of the ways to provide some form of relief for the country.
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