A senior lecturer from the Department of Finance, University of Ghana Business School, Dr. Lord Mensah believes that, Ghana’s revenue goes into decorating leaders and not better policies.
He made the comments in an interview with Kwame Tutu on Rainbow Radio 87.5Fm Wednesday.
He was reacting to the country’s Gross Domestic Product (GDP) which expanded by 9.3 percent in the third quarter of 2017.
He said this shows a positive sign and an economy that ‘’is growing.’’
The figure represents a 0.3 percent increment from what was recorded in the previous quarter, and 4.7 percent higher than the 4.6 percent recorded in the third quarter of last year.
In monetary terms the economy (including the oil sector) is worth some GH₵53.1billion when adjusted to inflation, compared to the GH₵44.4billion it was worth in the same period last year.
Answering a question posed to him on Frontline on Rainbow Radio 87.5Fm, on why we are not feeling the proceeds from our oil revenue, he said, the oil proceeds have some clauses attached to it.
In explaining further, he said when you ask why we are not feeling the proceeds; we need to also ask how many people are employed in that sector and whether we have created an intermediary within our oil sector.
He said, if the oil and gas industry experiences a growth, it is not inclusive hence that is why we are not feeling it.
Dr. Mensah stressed that we can feel the proceeds if government realign and invest the proceeds in social projects because they are mainly inclusive. So an example is the free SHS, health accessibility including subsidizing of healthcare among others.
He said most of the time; the chunk of the monies goes into decorations of our leadership. And when I say decoration of our leadership, you see leadership buying V8 which can be able to buy over 100s of computers for schools in our villages.’’
He said we generate the revenue alright but we do not invest them into better policies.
The country’s Gross Domestic Product (GDP) expanded 9.3 percent in the third quarter of 2017, anchored on growth in the industrial sector.
Commenting on what accounted for this quarter’s growth of 9.3 percent, Acting Government Statistician Baah Wadieh said: “This can be attributed mainly to the high growth rate recorded in the following sub-sectors: fishing grew by 57 percent during the quarter. Then we also have mining and quarrying, which grew by 40.8 percent, and out of this oil and gas grew by 72.2 percent. We also recorded substantial growth rates in the health and social works sector, of about 24 percent.
“Then there was also growth in the production of water and sewerage, 21.5 percent; electricity also grew by 15.3 percent; education expanded by 14.4 percent; public administration, defence and social security grew by 13 percent; and information and communication also expanded by 10.7 percent during the third quarter of 2017. And all these pushed up the overall growth rate of the economy for the third quarter,” he said.