The Economy was In Total Shambles under the Previous Administration-Kwakye Ofosu

Minister of Government Communications, Felix Kwakye Ofosu, has lambasted the previous New Patriotic Party (NPP) administration for wreaking havoc on Ghana’s economy.

According to Ofosu, the NPP’s tenure was marked by profound economic hardships, exacerbated by the Domestic Debt Exchange Programme (DDEP). “The cost of living crisis precipitated by their mismanagement has had a devastating impact on the people,” he lamented during an appearance on TV3’s Key Points on Saturday, March 15.

Kwakye Ofosu further highlighted the alarming depreciation of the local currency, the Cedi, which plummeted by 19% in 2024 and 27% in 2023. “This economy is in shambles,” he declared, emphasizing the gravity of the situation. “The currency’s depreciation is a stark testament to the economic mismanagement perpetrated by the NPP.”

Development Economist Dr. George Domfeh shared his expertise on the same program, advising Finance Minister Dr. Cassiel Ato Forson to reconsider the removal of the E-levy. Instead, Domfeh suggested reducing the rate, as completely abolishing it might not be the most economically prudent decision. “Economically, they should have done something about it; if the 1% rate is high, they could have reduced it,” he recommended.

Dr. Adu Owusu Sarkodie, an economics lecturer at the University of Ghana, also weighed in on the discussion, expressing his disagreement with the government’s plan to abolish the COVID-19 Levy by the end of the year. Sarkodie advocated for repurposing the funds generated by the levy to finance healthcare infrastructure, emphasizing the importance of investing in the nation’s health sector.

The 2025 Budget Statement and Economic Policy, presented by Finance Minister Dr. Cassiel Ato Forson on March 11, has been a subject of intense debate. While some have praised the budget’s focus on fiscal consolidation, others have criticized certain aspects, such as the removal of the E-levy and COVID-19 Levy.

In a positive development, the government has allocated GH¢51.3 million as seed funding for the establishment of the Women’s Development Bank (WDB), aimed at supporting women entrepreneurs and traders. This initiative seeks to address the persistent challenges women face in accessing capital for business growth.

Additionally, the government has allocated GH¢292.4 million to begin the free distribution of sanitary pads to female students in primary and secondary schools. This move aims to address the difficulties many schoolgirls face during their menstrual cycles, ensuring uninterrupted education.

The government has also demonstrated its commitment to social protection programs, increasing budgetary allocations to the National Health Insurance Scheme (NHIS), the Livelihood Empowerment Against Poverty (LEAP) Programme, the School Feeding Programme, and the Capitation Grant. These interventions underscore the government’s dedication to supporting vulnerable groups and ensuring social equity.

In his budget presentation, Dr. Forson emphasized the need for national unity and collective effort in addressing Ghana’s economic challenges.

He acknowledged the severe impact of recent economic difficulties, including currency depreciation, hyperinflation, high taxes, rising fuel and electricity prices, and soaring interest rates. Dr. Forson stressed that significant sacrifices are necessary to stabilize the economy, highlighting President John Dramani Mahama’s commitment to fiscal discipline.

Story by Lawrence Odoom/Phalonzy