The Deputy Managing Director of the International Monetary Fund (IMF), John Lipsky, observed that legislators and policymakers are faced with the challenge of explaining to the populace that unless the country�s fiscal affairs are managed carefully, oil revenues will not be able to make a real difference to growth, job-creation and living standards.
He warned that unless Ghana can mobilise more revenue and contain recurrent spending costs better, fiscal deficit of the magnitude the country has been recording recently would absorb all of the country�s future oil revenues, leaving nothing for increasing capital spending.
Large-scale borrowing is keeping interest rates high, which means more out of pocket costs for repayment.
Recently, the Managing Director of the World Bank Group who was in the country, Dr. Ngozi Okonjo-Iweala, also advised Ghanaians not to put all their eggs in one basket but diversify their economy. All these give indication that Ghanaians are rather too optimistic about the benefits of the country�s recent oil find, to the neglect of other equally important sectors like agriculture. Dr. Okonjo-Iweala observed that horticultural exports that currently amount to US$100 million can be increased to US$300 million.
The find has certainly brought in its wake a breath of fresh air with regard our economic woes but it is certainly not the panacea to all our woes.
The Trades Union Congress has called on government to publicise all contracts on oil and gas so that Ghanaians can see for themselves what has been negotiated on their behalf.
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