The Centre for Budget Advocacy to the Integrated Social Development Centre (ISODEC) has urged government to come out from its restrictive macroeconomic framework of reducing inflation and balance of payments, saying such a fiscal stance sacrifices growth and makes it almost impossible for the country to meet international human rights obligations.
In its initial reaction to the 2010 Budget, the Centre said the pursuit of such a fiscal policy would not allow government to tackle the high unemployment rate in the country and to pursue a public sector-led growth and transformation.
“For us the objective for fiscal policy is to finance a sustained, significant and permanent increase in public finance to support economic growth and deliver the basic necessities to secure a position achievement in human development.” Mr Nicholas Adamtey, head of the Centre said.
Mr Adamtey said macro stability without due consideration for the basic needs and entitlements of citizens in fulfillment of state obligations enshrined in the national constitutions enshrined in the national constitution, the United Nations Millennium Goals and international commitments like the African Human Rights and economic social and cultural rights framework is counter-productive.
He said it was the Centre’s expectation that government would engage in broad consultation with stakeholders of the national economy namely organized labour, religious bodies, professional bodies, chamber of commerce, farmers organization to secure a social pact for the management of the national economy.
The social pact will enable the government to negotiate and secure agreements/commitments of stakeholders to public sector reforms like rightsizing and the negotiation of wage levels until the situation improves, the role of the Bretton Wood’s institutions in domestic policy making and the need for policy autonomy and progressively reduce reliance on external financing of the budget.
The Centre welcomed the various measures outlined by government to shore up domestic revenue mobilization, especially the increase in mineral royalties from the current level of three to six percent and called on government to exhibit the political will in implementing the measures.
Source: The Daily Searchlight
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