Government as part of a prudent fiscal consolidation measure has emphasized its commitment to cutting down expenditure across board by 20 per cent.
The Minister for Finance, Ken Ofori-Atta who said this during the Government townhall meeting in Tamale on Thursday, February 10, 2022, reiterated that Government’s decision to rationalise 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 stated that the decision was in accordance with the Public Management Act (PFMA) and would 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 generate more revenue to invest in important sectors of the Ghanaian economy to the benefit of all,” the Minister for Finance said.
The Government of Ghana has been 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.
Allaying the fears of Ghanaians, the Minister for Information, Hon. Kojo Oppong Nkrumah said the levy provides Ghanaians with an opportunity to contribute to Ghana’s economic and infrastructural development.
He added that 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, Hon. Mavis Hawa Koomson, Deputy Minister for Transport, Hon. Alhassan Tampuli Sulemana and Northern Regional Minister, Alhaji Shani Alhassan Saibu.
Hon. Hawa Koomson on her part took time to demystify misconceptions on the levy. She said that contrary to claims being peddled by opposition factions, the Government would plough back the proceeds that would be accrued from the levy into sectors of the economy that will benefit Ghanaians in general.
Hon. Tampuli also 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 added that going to the Bretton Wood institution would come with a lot of conditionalities that would restrict the Government from providing the basic needs of Ghanaians.
The Northern Regional Minister, Alhaji Shani encouraged citizens to embrace the E-levy as the Government explore other mechanisms of burden-sharing and to raise additional revenue for the betterment of all citizens.
Source: MOI (PR Unit)
