A senior lecturer at the University of Ghana Business School, Dr Lord Mensah, has commended the government’s decision not to introduce new taxes in the 2021 mid-year budget statement.
The economist said the move shows that the government is committed to listening to the demands of the Ghanaian public.
“For the first time in the Fourth Republic, the exchange rate did not see a spike after an election year. Cumulatively, from the beginning of the year to date the exchange rate has depreciated by 0.6 per cent against the US dollars and appreciating by 3.6% against the Euro,†Dr Mensah told TV3.
He also commended the Finance Minister and his team for the contents of the mid-year budget statement, describing the document as impressive.
Dr Lord Mensah also commended the Finance Minister and his team for not presenting a supplementary budget during the presentation of the mid-year budget to Parliament on Thursday, July 29, 2021.
“I will say indeed I was somehow satisfied. I think for once the cry of Ghanaians have fallen into the good ears of the economic manager. If you look at the situation on the ground now, the Finance Minister and his team couldn’t have afforded than to maintain the status quo to ensure that we stay within the fiscal appropriation that we called for.
“If you look at our debt situation and then happenings across the globe, I was not expecting the Finance Minister to request for more money to revise the budget deficit that was read in November, for 2021. Clearly, it shows that as a country we have positioned ourselves to be conserved, to be prudent in our call for money. The situation is not that easy,†the Economist stated.
Predictions that the 2021 mid-year budget review will include more taxes and a supplementary budget was dispelled on Thursday by Finance Minister, Ken Ofori-Atta.
Presenting the mid-year budget review statement in Parliament the Minister said remarkable economic progress despite the coronavirus pandemic means Ghana’s economic transformation agenda is on course.
“This Mid-year fiscal policy review…does not come with a supplementary budget and our revised fiscal framework for 2021 is kept within the fiscal target of 9.5% of GDP.
“We are staying within the 2021 appropriation…I am not here today to ask for more money, I have not come to ask for more taxes. I have come to update the House on the performance of the economy for the first half-year of 2021 and our plan for the unexpired time of the year consistent with section 28 of the PFM Act,†he said, his voice drowned by sheers from the Majority Members of Parliament.
The Minority has accused the government of missing key targets in the first quarter of the year, fueling speculations that the government would most likely introduce taxes or increase existing ones to shore up revenue.
Hence the revelation by the Minister has been described as a bubble burster for the opposition legislators.