Finance Minister Ken Ofori Atta has announced several important concessions his ministry has made to the Minority in parliament in order to secure their buy-in of the government’s principal objective in the 2022 Budget and Economic Policy Statement of the government of Ghana-the E-Levy.
In a letter to the Speaker of Parliament, Mr. Ofori Atta stated that his ministry, on the instructions of the President, is bent on seeking consensus with the Minority, as has been the practice over the past five years.
In a press statement, Mr. Ofori Atta mentioned the points the Minority was insisting on, and which the government has willingly conceded, as the removal of the Agyapa Royalties matter from the Budget, plans to begin a study of the coastline problems at Keta and along Ghana’s coasts, the submission of the Aker Energy negotiations to Parliament, and on the matter of the re-imposition of the benchmark values, a plan to avert any hardships to importers and consumers.
Ofori Atta also promised that the Administration would work with the appropriate committees in a conciliatory manner to achieve results.
“We will work with the relevant Committees of Parliament to reflect these modifications in the 2022 Budget as is the usual practice before the Appropriation Bill is passed. Any other concerns which may emerge shall be addressed during the discussions of the estimates by the Committees, as has been the tradition,” Mr. Ofori-Atta told the press.
These details were contained in a press statement on the 2022 Budget Statement and Economic Policy. It was dated 6th December 2021.
Giving the background to developments yesterday, Mr. Ofori Atta stated that on Friday, 26th November 2021, the Parliament of Ghana was scheduled to sit and conclude the debate on the 2022 Budget Statement and Economic Policy of Government. He said that after the closing statements from both the Majority and Minority leaders, the Speaker gave him the opportunity to make a statement to the House.
He stated that during the statement, he prayed the House to be given the opportunity to engage further with the Minority on the demands they have raised in their closing remarks.
“Unfortunately, my request was declined,” he said.
He said that he had requested this opportunity to engage with the Minority because he believed that the tradition of consensus in approving the budget that had been nurtured over the last 5 years was important for National resolve and determination to be united in transforming our society.
The Budget was subsequently approved on Tuesday 30th November 2021.
“However, during my statement on that day, I promised to respond to the concerns of the Minority after further consultations with stakeholders, which I have now done,” he said.
Mr. Ofori Atta stated that on behalf of the President, he has written to the Right Hon. Speaker of Parliament with details of modifications in response to emerging concerns by all stakeholders including the Minority.
The proposals are to amend paragraphs 442 and 443 to take out references to mineral royalties collateralization with regard to the
“It is important to note that, any reference to Agyapa was for informational purposes, and as such was not reflected in the fiscal framework,” he said.
Another issue was in respect of the unfortunate tidal waves which rendered about 3,000 people homeless in Keta.
Mr. Ofori Atta said, “We shall make the necessary budgetary allocations of at least GHS10 million to complete the Feasibility and Engineering studies for the coastal communities adversely affected. We will broaden the scope of the study to consider a more comprehensive solution to protect Ghana’s 540 Km of coastline, including the 149 Km between Aflao and Prampram. Meanwhile, NADMO has responded to the humanitarian crisis created by the tidal waves on the Keta coastline.”
On the Aker Energy transaction, he said that the Administration intends to amend paragraph 829 of the 2022 Budget on the acquisition of a stake from Aker Energy and AGM Petroleum by GNPC, to reflect the resolution of Parliament dated 6th July, 2021 that “the terms and conditions of the loan for the acquisition of the shares shall be brought to Parliament for consideration pursuant to article 181 of the Constitution.”
Additionally, he promised, “On the benchmark values, we shall avert any hardships to importers and consumers while safeguarding the interest of local manufacturing industries to secure and expand jobs for our people. This administrative exercise which reviewed 43 out of 81 line items, has the objective to promote local manufacturing and the 1D1F policy, including the assembling of vehicles. It is important to note that this adjustment affects only 11.4% of the total CIF value, of which 50% is for vehicles. From our analysis, the potential increase in retail prices should be relatively insignificant and therefore inflation should be muted. The YouStart policy will also support our accomplished Traders with appropriate training and access to capital to become Manufacturers in order to expand the industrial base of our society and our import substitution strategy, in line with our Ghana Beyond Aid agenda.”
On the contentious matter of the E-levy, Mr. Ofori Atta stated that having regard to its serious fiscal implications, the Administration will continue consultations with the Minority Caucus in Parliament and other relevant stakeholders, with a view to achieving consensus and reverting to the House in the shortest possible time.
Source: Thedailysearchlight.com