Finance Minister Kwabena Duffour has dismissed suggestions the current relative stability being enjoyed in the economy is because government is not spending enough. There has been a fair degree of stability with both inflation and interest rates declining with the Ghana cedi also proving fairly stable against the major international currencies. Some economists such as Joe Abbey of the Center for Policy Analysis have warned of tight spending by government in an attempt to keep inflation down. This, according to the analyst, is too high a price to pay because it could deprive the economy of badly needed jobs. According to him, tight spending could lock a lot of private sector capital, especially the indigenous sources such as the small-scale enterprise “which we are hoping to be the ones that will grow and provide jobs…” he said. Click here to listen. But the Finance Minister disagrees. He tells Joy Business on the contrary, the government is spending especially in productive areas. He adds that the economy is doing so well because of prudent fiscal management and that it is not true when businesses say there is very little money moving around. Click here to listen. Meanwhile the Bank of Ghana’s composite index which gauges the direction of the economy indicates business and economic activity slowed down for the first two months of 2010. Details of the index disclosed at the Monetary Policy Committee news conference last Friday showed a decline in taxes on imports, retail sales and VAT collections. Other indicators include a drop in tourist spending, private business transfer to social security and a decline in commercial bank credit to private businesses. Businesses are also said to be less optimistic of the environment and economy improving due largely to the high lending rates by the banks. Source: Myjoyonline.com/Ghana