As Ghana eagerly anticipates the presentation of the 2024 budget, the government has hinted at a policy-heavy approach aimed at cushioning citizens against the persistent rise in the cost of living.
The upcoming budget assumes heightened significance within the context of the government’s commitment to the International Monetary Fund (IMF) post-COVID-19 program for economic recovery.
The Ministry of Finance assures Ghanaians that the proposed measures will be crafted to ensure fiscal responsibility, effective debt management, and the promotion of social equality.
Information Minister, Kojo Oppong Nkrumah, shed light on the growth plan approved by the cabinet, expressing the government’s commitment to deepening equality, stabilizing the economy, creating jobs, and alleviating the cost of living.
“The idea is to deepen equality, get the economy stabilized and growing to create some more jobs, try and bring down the cost of living, and while at that, specifically bring inflation down as well. You will see that find expression as well in the economic policy that would be laid before parliament.”
Kojo Oppong Nkrumah
He reemphasized that these goals would find expression in the economic policy and budget statement set to be laid before Parliament.
Furthermore, Honorable Kojo Oppong Nkrumah, delved into the fiscal underpinnings of the budget, emphasizing that the fiscal policy framework had already been signed off as part of the agreement with the IMF. The government aims to follow a fiscal path that narrows the deficit position, targeting a positive 0.5 in the coming year. This approved fiscal path serves as a critical aspect of the budget, signaling a commitment to responsible financial management on the part of government.
Doubts Over Hopes
However, amidst these assurances, concerns have been raised by John Jinapor, a Member of Parliament for the National Democratic Congress (NDC). Jinapor disclosed that the government plans to introduce new taxes in the 2024 budget, aiming to generate an additional eleven billion Ghana cedis in revenue.
Jinapor expressed the opposition’s stance during a media interaction in Accra.
“The minister indicated that he intends to raise an additional GH₵11 billion which is about 1 percent of GDP, but we have told him that we think that the people have been taxed so much so it will be inappropriate to come with new taxes rather the minister should look at cost cutting.”
John Jinapor
In a related development, the Concerned Drivers Association of Ghana has called on the government to reintroduce road tolls in the upcoming budget. The association’s public relations officer, David Agboado, highlighted the need for addressing road infrastructure challenges and proposed that the revenue generated from tolls could fund much-needed road repairs.
As Ghana awaits the unveiling of the 2024 budget, the balancing act between providing relief to citizens and generating revenue remains a critical challenge for the government. The proposed measures, including potential new taxes and the reintroduction of road tolls, signal a complex and intricate financial strategy aimed at steering the nation toward economic recovery and stability.
Notwithstanding, the Finance Minister, Ken Ofori-Atta, is poised to present the economic policy and budget statement, a document expected to outline measures addressing the challenges posed by the economic crisis and fostering social growth while managing the national debt.
In an ealier press statement, the Minister of Finance, Ken Ofori Atta, assured the public of the confidence he has in the yet to be read economic policy and budget statement.
“It comes just after the successful first review of the three-year US 3 billion IMF-ECF programme. It will also heighten among others the performance of the economy, efforts to boost the productive capacity of the economy through the new growth strategy, fiscal measures, and debt management strategies to deepen stability and promote growth.”
Ken Ofori Atta
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