Government as part of a prudent fiscal consolidation move says it is committed to cutting down expenditure across board by 20 per cent.
Minister for Finance, Ken Ofori-Atta who said this during a government townhall meeting in Tamale on Thursday, February 10, 2022, said government’s decision to rationalize expenditure by some 20 per cent is to decisively strengthen fiscal consolidation of the 2022 budget to address critical concerns of the economy, create jobs for the youth, obtain a positive primary balance and stabilize debt.
He said the decision is in accordance with the Public Management Act (PFMA) and will help strengthen expenditure management, bring the deficit back within limit, make development sustainable and channel expenditure to critical sectors of the economy to increase growth and create jobs
“We are committed like we have stated earlier to cutting down public expenditure by 20 per cent. This means that our fiscal consolidation agenda going forward is not going to be only revenue-led but also expenditure focused. And through the E-levy, government can rack in more revenue to invest in important sectors of the Ghanaian economy to the benefit of all,” the Minister for Finance said.
Government has been on the road holding series of townhall meetings to sensitize Ghanaians on the Electronic Transactions Levy (E-levy), the subject of which has raised serious controversies particularly among market women and other businesspersons who rely heavily on Mobile Money as a means of transacting business.
However, allaying the fears of Ghanaians, Minister for Information, Kojo Oppong Nkrumah said the levy provides Ghanaians with an opportunity to contribute to Ghana’s economic and infrastructural development. He said the E-levy will put government in a better position to provide for the needs of Ghanaians.
Also present at the townhall meeting was the Minister for Fisheries and Aquaculture, Mavis Hawa Koomson, Deputy Minister for Transport, Alhassan Tampuli Sulemana and Northern Regional Minister, Alhaji Shani Alhassan Saibu.
Mrs. Koomson on her part took time to demystify misconceptions on the levy. She said government contrary to claims being peddled by opposition factions will plough back the proceeds that accrue from the levy into sectors of the economy that will benefit the generality of Ghanaians.
Further, Mr. Tampuli emphasized the need for Ghana to be self-reliant and look internally to mobilize revenue rather than go cup in hand to the International Monetary Fund (IMF). He said going to the Bretton Wood institution comes with a lot of conditionalities that will restrict government from providing for the basic needs of Ghanaians.
Regional Minister, Alhaji Shani encouraged citizens to embrace the levy as government explore other mechanisms of burden-sharing and to raise additional revenue for the betterment of all citizens.
