COVID-19 Crisis: Govt Employs More People In Security And Health Services - Finance Minister

The Minister for Finance, Mr Ken Ofori-Atta, has stated that although the economy of the country was adversely affected in the wake of this deadly Corovirus (COVID- 19) pandemic, the government of Ghana has instituted contingent measures to employ more people in some critical areas such as security and health services in the country.

"In fact, although the workload from the public sector had to be reduced in many cases, all through this COVID-19 crisis, the government of Ghana has never once embarked on any programme of laying off public sector workers.

"Rather, we have continued to pay all workers and even proceeded to employ more in some critical areas such as Security and Health services,' Mr Ofori-Atta made this disclosure while he was delivering the mid-year budget statement in Parliament on Thursday, July 29, 2021.

The presentation is in accordance with Article 179 of the 1992 Constitution and the Public Financial Management Act 921, which offers the opportunity to revise macroeconomic targets and provide a comprehensive economic outlook for the rest of the year.

Presenting the budget statement, Mr Ofori-Atta announced some key job creation programmes and projects government intends to undertake over the next three and half years.

Key among the programmes is the creation of one million more jobs over the period under the “Ghana Cares Obaatanpa Programme.”

Already, Parliament has granted approval of GH¢129 billion for the services of the government for the 2021 financial year after the Minister for Parliamentary Affairs, Osei Kyei Mensah Bonsu requested the sum during the 2021 budget and economic policy statement earlier this year.

The 2021 Budget was themed ‘Economic Revitalisation through Completion, Consolidation and Continuity, which was hinged on balancing on fiscal consolidation to facilitate economic recovery from the impact of the COVID-19 pandemic.

He said "Mr Speaker, it is difficult to attempt to normalise the catastrophe that has befallen the world. The devastating impact of the COVID-19 pandemic on lives and the global economy is widely acknowledged.

According to him, the grim statistics are that over 196 million people have been infected by the virus, 4.19 million dead, and over US$15 trillion spent.

 In Ghana, he pointed out the government joins in mourning with the 823 families who have lost loved ones and pray for the recovery of those afflicted.  

He lamented that the COVID-19 induced global recession has been the deepest since the end of World War II, 76 years ago. 

He added that the global economy contracted by 3.3 per cent in 2020, a 6.7 per cent decline is relative to the 3.4 per cent growth forecast by the IMF back in October 2019. Growth in Sub-Saharan Africa was -1.9 per cent.  

He stated that "From the very first day that the novel coronavirus arrived here in Ghana in March 2020, the Government of President Nana Addo Dankwa Akufo-Addo recognised the dire consequences that it would have on our economy, particularly on jobs, and on our ability to raise revenues to meet both the cost of managing the pandemic and Government’s regular spending obligations.

"If I may quote from the President’s address on 27th March 2020, where he underlined the challenge and the approach: “Should the virus continue to linger for the rest of the year, the effects on our economy would be dire.

However, as we have demonstrated over the course of the last three years, where we inherited an economy that was growing at 3.4% and transformed it into one which has grown by an average of 7% over the last three (3) years, I assure you that we know what to do to bring our economy back to life. What we do not know how to do is to bring people back to life. We will, therefore, protect people’s lives, then their livelihoods.” 

He said Mr Speaker, therefore, the hardships that the COVID-19 pandemic visited on people’s lives, the stress on parents, the frustrations of young people, the negative impact on businesses, for both employers and employees, the worsening of the unemployment situation, the effect on the public debt and the stress on revenue mobilization, was unprecedented but expected. 

Indeed, he stated that no country in the world had prepared for the crisis that unfolded.  

He said the leadership, was, therefore, assessed by the measures that individual countries and their respective leaders took to deal with the crisis. Here in Ghana, we took responsible, innovative, decisive and bold actions to tackle the crisis.  

"That is why, a year ago, on Thursday, 23rd July 2020, I came before this House to present what I called “an extraordinary Mid-Year Fiscal Policy Review of the 2020 Budget Statement and Economic Policy”, and secured more funds to provide an immediate and appropriate response to the severe economic impact of the pandemic.

In addition, the 2021 Expenditure -in- Advance-of-Appropriation presented to this House on 28th October 2020, saw to the uninterrupted delivery of Government business in the first quarter of this year; and, the ongoing implementation of the 2021 Budget and Economic Policy of Friday, 12th March, is driving the revitalising the economy in line with our theme of Completion, Consolidation and Continuity," he noted.

With these approvals, the Finance Minister indicated that the government intervened with timely measures to help, particularly, households, schools, hospitals and businesses withstand the impact of the pandemic.

He mentioned that the government has provided direct transfers to households through food distribution and absorption of water and electricity bills.

Additionally, he pointed out tax waivers to frontline health workers and stimulus packages to small and medium-scale enterprises were also provided.  

These interventions, according to him, stabilised the situation, protecting lives, supported businesses and preserved jobs that would otherwise have been lost. 

 Freeman Koryekpor Awlesu Greater Accra Regional Correspondent