DDEP: GNCCI urges Gov’t to rationalise expenditure to make up for 5% shortfall in debt programme
The Ghana National Chamber of Commerce and Industry (GNCCI) has asked government to rationalise its expenditure to make up for the 5% shortfall of the Domestic Debt Exchange Programme [DDEP].
This follows the exemption of pension funds from the DDEP after agitations and threats of mass industrial strikes by organised labour to government.
Reacting to government’s decision to exempt pension funds, President of the Chamber, Clement Osei Amoako quipped government can still do more by cutting expenditure and reviewing its policy programmes such as the Free SHS to save some cost to service its debt.
“The other side that we have to look at is what the gap creates, how can government finance it? It is part of the agreement and policies put in place to sustain our debt.”
“The ministerial numbers must be reduced. We don’t have the money to even allocate some funds to some ministries”, he remarked.
Further stating that modifying the free SHS to reduce pressure on the economy is non-negotiable.
“We can also modify the free SHS to make some savings there”.
Government in agreement with Organised Labour on Thursday, December 22, exempted pension funds from the debt exchange programme.
Reports indicate that the decision by government was reached during a crunch meeting between the Finance Chief Ken Ofori-Atta and Organised Labour.
During the crunch meeting, Finance Chief Ken Ofori-Atta gave utmost assurances that pensions of all workers will be exempted from the programme.
The DDEP, launched on Monday, December 5, 2022 and expected to take off next month, was announced as part of austerity measures to save the economy from collapsing.
Per the programme, government is going to exchange over 60 existing bonds with four (4) new bonds that have maturity dates ranging from 2023 to 2037.
