DFP commends government but calls for vigorous economic policies

The Democratic Freedom Party (DFP) on Friday called on Government to pursue more vigorous economic policies geared at reaching eight per cent Gross Domestic Product (GDP) growth within the shortest possible time.

A statement issued in Accra and signed by Alhaji Abdul Rahman Issaka, Interim National Chairman of DFP, commended Government for achieving a growth rate of 6.2 per cent GDP by the close of the year but said the growth was not enough considering the population growth rate of three per cent.

The statement said the DFP found the macro-economic stability in the country as similarly commendable, considering the crude oil price shocks that the country was experiencing but saying that the stability had been at a cost. “The statement on social programmes of the Government is again commendable.

These are the National Health Insurance Scheme (NHIS), Capitation Grant, School Feeding Programme, Free Bus Service for school pupils and generally the Metro Mass Trans system which has been re-introduced are all in the right direction but more must be done,” the statement added.

It said control of inflationary pressures had resulted in cash squeeze in the system and had denied the economy the fuel needed to fire it.

The statement said the fact that interest rates had not gone down as much as was desirable, was an indicative that there was a problem and needed to be addressed to move the economy forward.

"DFP views that the removal of taxes is in the right direction however, the tax proposals which are aimed at the poultry and rice sectors of agriculture do not address the larger bottlenecks created by trade liberalization," the statement said.

It suggested that any incentive through a tax regime must be paced to protect local industries and agriculture products. The statement said, “DFP regards the comprehensive pay structure review as very desirable and that action on it must be expedited.

However, DFP is aware that there is poverty despite all the efforts made to attain macro-economic stability.”GNA