The political parties in Ghana are gearing up for the upcoming 2016 Elections. All the parties have different positions on determining the management of the oil and gas revenue.
To ensure fiscal discipline with regards to the revenues that may be withdrawn from the Annual Budget Funding Account (ABFA), the Ghana Heritage Fund (GHF) and the Ghana Stabilization Fund (GSF), the different political parties have different positions on how to ensure fiscal discipline to avoid inflationary pressures on the economy.
The People’s National Convention (PNC) if elected in the upcoming elections would put a fiscal Responsibility Act in place to ensure budget and expenditure controls and also revise existing fiscal policies that give huge tax breaks to international companies in the oil and gas sector. The lack of discipline with respect to expenditures and fiscal balance are the causes of fiscal imbalances according to the PNC. Measures would be in place to solve such a problem. Massive corruption and the established culture of impunity would also be attended to.
The Convention People’s Party (CPP) also when elected in the up-coming elections would introduce a fiscal responsibility bill to ensure fiscal discipline and sustainability in the country. The party also plans to introduce a cap on borrowing. This is will reduce the debt to Gross Domestic Product (GDP) ratio in the country. Constitutionally, the party intends to introduce the two-thirds of parliamentarians on loans acquisitions.
The ruling National Democratic Congress (NDC) has the position that, fiscal discipline is imperative for the long-term macro-economic stability of the economy. To ensure fiscal sustainability that party’s position on the management of funds from the various created is that, it will ensure expenditures takes place through the normal parliamentary budgetary cycle. The NDC will support the establishment of the Parliamentary Budget Office (PBO).
In conclusion, the sustainability of Ghana’s debt must a key policy position of the various political parties seeking to win power in the up-coming elections. This will make Ghana an investment friendly environment and as well ensure that, the revenue accrued from the oil exploration are put to proper use for economic growth and development.
By: David Aduhene Tanoh–www.reportingoilandgas.com