According to Dr. John Kumah, Deputy Minister of Finance, the macroeconomic environment is meant to be an enabler, but the Ghanaian economy is not yet there but on the way.
He stated that the government is reducing the deficit, revising discretionary spending targets by 30%, and has imposed a moratorium on vehicle imports, among other things.
He stated that GRA exceeded its revenue target last year, and that this is expected to continue in the fiscal year 2022. However, external factors such as COVID-19, the Russian-Ukraine crisis, and others have had a negative impact on the economy.
He also noted that the Fiscal Responsibility Act is very good in guiding and monitoring the government.
Speaking about the policy rate and other macroeconomic variables during the IMANI-GIZ Reform Dialogue on Ghana’s Macroeconomic Environment, John Kumah who is also lawmaker for Ejisu also noted that the Bank of Ghana through its monetary policy tools have been implementing policies to address the economic problems. He noted that government has to do more with regard to the efficiency of its expenditures.
Recently the Finance Minister Ken Ofori Atta announced some measures to deal with the economic challenges facing Ghana.
- Due to the e-levy, traders are resorting to cash transactions – TAGG
- Prof. Quartey believes that the 1.5 percent E-Levy rate will have a negative impact on the GH6.9 billion target.
Mr Ofori-Atta announced on Thursday March 24 that with immediate effect, the government had imposed a complete moratorium on the purchase of imported vehicles for the rest of the year.
This affected all new orders, especially 4-wheel drives, he said.
“With immediate effect, Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year. This will affect all new orders, especially 4-wheel drives. We will ensure that the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period,” he said.
“Again, with immediate effect Government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels; Government will conclude on-going measures to eliminate “ghost” workers from the Government payroll by end December 2022;
“Discretionary spending is to be further cut by an additional 10%. The Ministry of Finance is currently meeting with MDAs to review their spending plans for the rest of the three (3) quarters to achieve the discretionary expenditure cuts; ii. these times call for very efficient use of energy resources.
“In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st April 2022,” he added.
