By Kizito CUDJOE
The Vice President and flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has initiated dialogue with key labour organisations in the country to discuss his proposed policies and obtain critical feedback as he finalises his manifesto ahead of the upcoming general elections.
During the separate discussions – with the Trades Union Congress (TUC) and the Civil and Local Government Staff Association, Ghana (CLOGSAG) – Dr. Bawumia outlined his vision for a “lean government”, emphasising efficiency and a reduced bureaucratic footprint.
He noted that government’s initial interventions have been socially driven, which now paves the way to relook the private sector’s role in the country’s economic development.
To this end, he said the country is at a critical point where government must act as a facilitator rather than a competitor to the private sector. “By reducing the size of government and focusing on efficiency, we can create a more conducive environment for businesses to thrive,” Dr. Bawumia stated.
This approach, he asserted, will help to ensure fiscal discipline among others. “There are two things I want to do in terms of fiscal discipline. First of all, the fiscal rule needs to come in an amended form, which will ensure that government expenditure does not exceed 105 percent of the previous year’s tax revenue,” he stated.
Additionally, he said the Fiscal Responsibility Council, enshrined in the Fiscal Responsibility Act, should be given independence to have strict oversight over the Finance Ministry, as compared to what is currently constituted in the Act.
Furthermore, he reiterated that his government intends to move government expenditure from at least between 3 to 5 percent of the Gross Domestic Product (GDP), within the first 4 years of his administration, from the public sector to the private sector.
“What this does is reduce borrowing significantly because you don’t need to spend so much,” and by so doing empower the private sector provide the kind of support that reduces pressure on the budget. This will among others strengthen the private sector’s job-creation efforts, and in the long-term also bring down interest rates.
The Vice President also stressed the importance of public-private partnerships (PPPs) in infrastructure development and service delivery, noting that such collaborations will be crucial in addressing the country’s infrastructure deficit without overburdening public finances.
On the country’s tax system, Dr. Bawumia argued that it needs a complete overhaul considering its colonial nature and the burden it brings on the people – particularly the private sector. Given this, he reiterated his proposal to implement a flat tax system that will offer a tax amnesty to the public and businesses.
This flat tax system, which he proposed to be implemented with the start of his government, he underscored, will significantly enhance revenue collection among others.
Consequently, he said, the flat tax regime will be applied to import duty as well; enabling importers to have knowledge of their payment obligations and pay charges in local currency before their goods arrive.
The Vice President, who was accompanied by his campaign team including the former Majority Leader and Member of Parliament (MP) for Suame, Osei Kyei-Mensah-Bonsu, enumerated other things including his plans for the mining, power and agricultural sectors, national development agenda among others.
Labour leaders welcomed Dr. Bawumia’s willingness to engage in dialogue and appreciated the opportunity to voice their concerns and suggestions. The General Secretary-TUC, Dr. Anthony Yaw Baah, took time to enumerate the TUC manifesto which is expected to inform the plans of various political parties ahead of the 2024 general elections.
Executive Secretary-CLOSAG, Isaac Bampoe Addo, during the separate interactions also shared the concerns of CLOSAG.
Meanwhile, members of the two bodies took turns seeking clarity on some of the proposals while sharing ideas to enhance the economic development agenda the NPP flagbearer is seeking to pursue when elected into power. Among the key issues raised were job security, wage increases and the need for enhanced training and development programmes to improve workforce skills.
