Finance Minister Dr Cassiel Ato Forson has said that the economic situation inherited by the Mahama administration is more dire than what they anticipated prior to the 2024 general elections.
He says the numbers are not looking good.
This was disclosed by the Presidential Spokesperson, Felix Kwakye Ofosu. According to Mr Ofosu, the Finance Minister said this during President John Mahama’s first cabinet meeting last week.
Dr Ato Forson is reported to have said that “the economic situation is dire, numbers are worse than we had known in the period of elections.”
President Mahama last Thursday announced his 19 cabinet ministers.
The list includes Minister of Finance, Dr Cassiel Ato Forson; Interior Minister Muntaka Mubarak; Attorney General Dr Dominic Ayine; Education Minister Haruna Iddrisu;, and Minister of Foreign Affairs, Samuel Okudzeto Ablakwa.
This is pursuant to Article 76 (1) of the 1992 Constitution which states that: “There shall be a Cabinet which shall consist of the President, the Vice-President and not less than ten and not more than nineteen Ministers of State.
Article 76 (2) specifies the role of Cabinet, “The Cabinet shall assist the President in the determination of general policy of the Government.”
Prior to the cabinet meeting, President Mahama hinted that he had instructed the Finance Minister to cut expenditure as much as he likes.
He says this demonstrates the government’s commitment to rebuilding the economy.
Mr Mahama said this after asserting that the economy was criminally handled by the previous NPP administration.
He said he couldn’t understand how the previous government “was so reckless” in the handling of the economy.
Speaking to organised labour, he said, “Comrades, you know we are your natural allies, we have worked together for many years.
“One thing that is a cardinal principle for us is to tell the truth at all times, we all knew that the economy was in crisis but some of the things I am discovering myself, have been a criminal handling of our economy, Ghana is a crime scene because how a government can be so reckless, I can’t understand it.
“But we are faced with a reality, our options are very few, we can behave like the ostriches and hide our heads in the sand and let the economy crash but then what effect will it have on Ghanaian households and everybody? So I have told the Finance Minister to cut expenditure as much as he likes, even we ourselves in government machinery, cut as much of our budget as you like because we all must make those sacrifices. A certain distrust for the political class has arisen because it is like when everybody else is tightening their belt, the political class is loosening itself. I want to assure you that we are all going to tighten our belts. and there will be no wasteful expenditure.”
Mr Mahama’s meeting with Labour came at a time when his government has approved a 10% salary increase for public sector workers.
Payment of the increment will begin from January 1 this year.
Labour agreed to the 10% raise after President John Mahama engaged with them and appealed for their acceptance.
