The Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana (UG) has called on the government to reintroduce the road toll system as part of its fiscal consolidation measures.
According to ISSER, the tollbooths should be re-instated with an efficient electronic-pass system to address congestion in some parts of the country’s roads.
Professor Quartey, Director at ISSER, made this known during a presentation at the 2022 edition of the ISSER Roadshow on the State of the Ghanaian Economy Report and Ghana’s Social Development Outlook (GSDO), which was held in collaboration with the University of Education, Winneba. It was held on the theme: “Harnessing Stakeholder Engagement and Feedback for Research Impact,” and it provided a platform to discuss the successes and challenges of Ghana’s economy and ways to boost the economy through a nonpartisan lens.
According to Professor Quartey, the outright removal of road tolls put the government in a bad light because it sent wrong signals to private investors who wished to partner with the government in other projects. He thus, insisted that the tollbooths should be reopened and effectively and efficiently operated.
Professor Quartey observed that Ghana’s economy suffered turbulent moments in the first quarter of 2022 owing to an array of developments both internally and globally. He added that the economy was badly hit by the rise in crude oil prices from $74.17 per barrel in December 2021 to $130 as of March 7, 2022, before going down to $115 as of March 24.
The Economist noted that the Cedi has so far cumulatively depreciated by 15.6 percent against the dollar, 13.4 percent against the Pound Sterling, and 13.3 percent against the Euro.
“At end of the December 2021, the public debt stock has increased to GHC351.8 billion cedis which was 80.1 percent of GDP as compared to the GHC218.2 billion in December 2020.”
Professor Quartey
Hardship Not Peculiar to Ghana
Professor Quartey, moreover, noted that the prevailing hardship in the country is not a peculiar situation, citing the 2022 inflation rates of the US, Germany, and UK as examples.
However, the Director at ISSER averred that despite the challenges, the country is growing with good prospects.
On fiscal consolidation, Professor Quartey said the government must embark on aggressive revenue mobilization through efficient tax and non-tax revenue-generating measures. He noted saying, “for instance, the property rate of GHC468 million earmarked for 2022 was inadequate in view of the number of properties in the country.” He thus urged the government to do more in terms of revenue collection.
Meanwhile, the government is targeting to achieve a fiscal deficit of 7.4 percent to Gross Domestic Product (GDP) in 2022 as against the projected 12.1 percent for 2021 in a bid to salvage the economy.
It can be recalled that the Ministry of Roads and Highways on Thursday, November 18, 2021, closed all toll booths across the country following a directive by the Ministry of Finance in Parliament.
Consequently, it introduced a few economic policies including the imposition of the Electronic Transfer Levy (E-levy) to strengthen domestic revenue mobilization and reduce borrowing. This, and many others, the government thinks will help improve the lives of Ghanaians.
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