UPPER WEST REGIONAL YOUTH FEDERATION (UWRYF)
For Immediate Release 20th December, 2022
Give Your Expenditure And Government Size A Haircut And Leave Our Pensions Alone.
As a federation that represent the aspirations and voice of organized youth groups, associations and organizations, we are alarmed by the retrogression our country Ghana is being pulled through. Even a two (2) year old child knows our economy is in serious distress. Without being pessimist, we appreciate the government of Ghana through the finance minister admission that the economy is not in good shape and some drastic measures are required to put the economy on tract.
However, a country like Ghana that has witness a government reckless fiscal behaviour should not expect any better outcomes. With a projected public debt to hit 104.7% of GDP by end of 2022 (GHS522 Billion), credit rating of Caa2 (Moody), a budget deficit of 7.6% of GDP (Fitch rating), 13.9% unemployment rate, inflation rate at 50.3%etc are all indications that all is worse than we think.
We have leant with outmost dismay, through the finance minister’s fiscal policy for 2023 a debt restructuring and haircuts program. Under the domestic debt exchange, local bonds will be exchanged for new ones maturing in 2027, 2029, 2032 and 2037, and their annual coupon will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity. Haircut as also indicated, is referred to a reduction applied to the value of an asset. It is expressed as percentage. For example if an individual holding a particular government bond worth $1 million but is given a haircut of 20%, it means it is treated as though it has a value of $800,000. This will certainly not raise the investor confidence with the economy.
It is far more disheartening to include the vulnerable worker’s pensions in this haircuts.
The government of Ghana led by HE Nana Addo Dankwa Akufo Addo/Dr. Bawumia and the finance minister should leave the poor workers’ pensions funds alone and rather look for a more viable alternative to sustain its rising debt and manage the economic crisis.
- As a matter of urgency, HE Akufo Addo should cut down his government size by 60%
- Reduce the Jubilee House expenditure by 50%
- The executive should have a 30% haircut on their salaries including allowances
- Government should restructure their programs to prioritize the most essential once
- And finally government led by HE Nana Akufo Addo should curtail the wastage in the system through corruption and incompetence.
We wish to assure organized labor we are with them to protect the poor worker’s pensions and the youth will resist any attempt to gamble with the pension’s funds.
We call on Parliament to remain resolute in ensuring the government maintains a prudent fiscal behaviour and also prevent the government from haircutting the poor workers’ pensions.
Ghana will rise again
SIGNED
Haruna Zinentah
Regional President
0246 669 650
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