Huge deficit in economy-Veep declares

The Vice President, John Dramani Mahama has stated that there is a huge deficit in the nation's economy with regards to Gross Domestic Product (GDP), which requires the immediate assistance of donor countries in order to stabilize the economy.

According to him, his government, prior to assumption of office estimated that the budget deficit to GDP was between 9-10 percent, but their four days stay in office has given them a different picture about the economy, which now stands between 13-14 percent budget deficit to GDP.

"This means that there is a very large hole in the budget. Ghanaians were not given the true picture of the economy before the elections", noted the Veep, when the Parliamentary Press Corps paid a courtesy call on him at his temporal office at the International Conference Centre in Accra, yesterday.

GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. It is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. GDP is commonly used as an indicator of the economic health of a country, as well as to gauge a country's standard of living.

According to the Vice President, the new administration would present a budget to Parliament for consideration in March, but before it does that it would require the assistance of bilateral donors and the donor community to see how to leverage as quickly as possible with some new lines of financing in order to stabilize the economy.

He said, the main challenge of the year for the new government would be how to stabilize the economy, but was quick to add that the transitional team of Finance, headed by Togbe Afede XIV, was working closely with out-gone Ministers of state at the Finance Ministry to put things into order and to take over that portfolio and enact appropriate policies that would put the economy back on its feet.

The Veep was, however, critical on issues that were raised by the Parliamentary Press Corps led by its Dean, Edwin Arthur on matters affecting the media in the country.

Among the issues that were put before him were; charlatans who have of late invaded the profession and has given rise to mediocrity and lowering of journalistic standards in the country, which the Dean attributed to the influx of "mushroom" Journalism Institutions, decline in newspaper sales and the championing of the formation of the West African Parliamentary Reporters Union.

The Dean, therefore, congratulated the Veep on his elevation to the second highest office of the land.

The Veep promised the government's unflinching support in strengthening the media in the country, adding that his government would not be discriminative in the distribution of government advertisement.