Edmond Abu, a prominent figure from the Native Consortium, recently shared his insights on the fuel price hike and criticized the government’s approach to dividing ministries in an interview on Radio 98.1’s Good Morning Salone Program.
Abu emphasized that the removal of subsidies would disproportionately affect lower-income individuals, rather than the middle class as suggested by the IMF.
He argued that Africa’s economic structure is characterized by a divide between the wealthy and the impoverished, and the removal of subsidies would significantly impact the latter group. He provided an illustrative example of how increased transportation costs could lead to higher prices for basic goods in the market.
Contrary to the government’s claims, Abu contended that the negative effects of subsidy removal would extend beyond the high-end segment of the economy.
He emphasized the need for a broader discussion on government subsidies and pointed out that sustainable diversification of the economy is key to continued subsidization.
Abu further criticized the government’s decision to split ministries, citing examples such as the division of the Ministry of Information and Communication into four separate entities, and the splitting of the Ministry of Social Welfare, Gender, and Children Affairs.
He argued that such divisions create unnecessary budgetary burdens, leading to higher taxes for the public. He specifically highlighted the creation of new Resident Minister positions as examples of wasteful spending that strain the budget.
In conclusion, Abu stressed that these budgetary strains ultimately force the government to impose heavier taxes on the populace.
He called for a more responsible and strategic approach to government expenditures and urged a focus on diversifying the economy to alleviate financial pressures. The Native Consortium, he noted, is actively engaged in advocating for these discussions within government circles.
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