Govt refutes claims over inflation rate

GOVERNMENT has refuted claims by the external branches of the New Patriotic Party (NPP) that it is massaging inflationary figures and urged them to be abreast of inflationary figures.
It explained that the figures were released by the Ghana Statistical Services (GSS) after it had scientifically collected and collated information from the field and other sectors.
A Deputy Minister of Information, Mr James Agyenim-Boateng, who reacted to the allegations by the external branches, said it was not true that the figures were massaged by the government.
He explained that the government had no hand in the computation and announcement of such figures, adding that even other credible institutions such as the Centre for Policy Analysis (CEPA) and Institute of Statistical and Social Research (SEPA) had acknowledge the prudent measures by the government which had culminated in the unprecedented 9.46 per cent inflation rate.
Mr Agyenim-Boateng said the Mills administration inherited an inflation rate of 18.1 from the NPP administration and through prudent, reasonable and measured government spending, it had been able to chalk such an unprecedented economic success.
He further explained that when government managed the economy to the extent that inflation figures tend to nosedive, it meant that the commercial banks would continuously reduce their interest rates and allow domestic investors to borrow at lower rates, expand their businesses, create more jobs and pay more taxes into the national kitty for national development.
He said despite the overwhelming debt burden, unplanned and unbudgeted for projects bequeathed by the NPP to the NDC, the government had through prudent economic policies been able to pay GH¢445 million out of the GH¢800 million Tema Oil Refinery (TOR) debt.
Mr Agyenim-Boateng added that in 2009, the government serviced some of the debt left behind by the NPP amounting to GH¢2.98 billion, and said those criticising the government should imagine the effect on the economy, if all those amounts had been invested in other critical areas such as water, health and education.
He expressed surprise that in one breath, the opposition was doubting the figures and in another, alleging that the figures had come down because government was not spending.
Mr Agyenim-Boateng said in 2009, government’s expenditures was GH¢ 9.1 billion while in the first half of this year,it spent GH¢ 5.4 billion.
He stated that beside huge debts left behind, another area that government was battling with was the numerous unbudgeted for projects initiated by the NPP administration “ in order to gain cheap political points”.
Mr Agyenim-Boateng said because the then government did not have any dedicated fund for such projects, which include the Ofankor-Achimota road, they had stalled and that the Mills administration would have to fund them in addition to all other competing areas.
He said the Mills Administration had been able to increase the national reserve from 1.8 months during the NPP period to three months within just of 18 months in power.