Dr. John Kumah, the deputy Minister of Finance, has defended the continuation of the COVID-19 levy, even though the disease is no longer regarded as a threat to global health.
He emphasized the need for the government to continue collecting the levy from Ghanaians, due to the pandemic’s long-lasting detrimental effects.
The deputy Finance Minister underlined that even though COVID-19 is no longer considered a global pandemic, the financial burden it has left behind is still considerable. He stressed that the loans obtained in response to COVID-19 have not yet been entirely repaid and that the virus’s effects continue to have an impact not only on Ghana, but also on the rest of the world.
The economy and people’s lives were significantly impacted by measures like mask use during the pandemic’s height.
Dr. Kumah however, did admit that the COVID-19 levy had an expiration date of 2024 though. He affirmed his conviction that when that day arrives, a national discussion over the levy’s future will take place.
The COVID-19 levy will be decided upon, after discussion among all parties. In order to raise money for the fight against the virus and its impacts, the government instituted a 1% COVID-19 charge at the height of the global pandemic.
While some people contend that the tax should be discontinued because it serves no useful purpose, its continued existence is justifiable due to the pandemic’s ongoing financial effects.
Economic Challenges Not Caused By COVID-19
However, Felix Kwakye Ofosu, a member of the National Democratic Congress (NDC) communications team, has blamed the government’s careless spending for the nation’s current economic condition.
This remark was made in reaction to the government’s massive borrowing deficit, which totals GHC500 billion.
On Tuesday, August 1, 2023, the former lawmaker stressed that, contrary to what some have said, the Covid-19 pandemic and the Russia-Ukraine War were not the only factors contributing to the economic difficulties. He emphasized that although many nations throughout the world, including those in West Africa, were affected by the virus, their economic consequences were not as dire.
Additionally, Mr. Kwakye Ofosu said that the government’s purposeful and imprudent spending decisions, motivated by the desire to win elections, are to blame for the current state of affairs. He attacked the government’s incompetence in managing the economy and drew attention to the contradictions between its words and deeds.
He pointed out, for instance, that the same people who had previously condemned the NDC for turning to the IMF, are now using it themselves. He also raised worry regarding the government’s “Domestic Debt Exchange Program,” which involved taking GHC 100 billion from bondholders, which he claimed, seriously hurt the Ghanaian middle class’s finances.
On top of it, he emphasized the negative effects on the economy caused by the significant decline of the Ghanaian cedi’s value.
In short, Felix Kwakye Ofosu assumed that external factors like the Covid-19 pandemic or the Russia-Ukraine War are less of a cause of the country’s economic problems, than the government’s careless spending and deficiency in economic management. He attacked the government’s policies, pointing out its inconsistencies and the detrimental consequences it had on the populace and the nation’s economy.
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