Despite the current economic difficulties, President Nana Addo Dankwa Akufo-Addo said the government would find the necessary finances to fund the country’s infrastructure projects.
Nana Akufo-Addo stated the COVID-19 pandemic has caused a huge blow to the country’s fiscal condition during a meeting with some chiefs from the Dzodze Traditional Area in the Volta Region.
He explained that because so many people were afflicted by the pandemic, the government was compelled to make unanticipated expenditures such as providing free water, food, and power, among other things, to keep the economy from collapsing completely.
“Revenues decreased significantly in 2020 and 2021 as a result of the COVID’s slowing economic activities, and the government had to incur additional expenditures to keep the country running,” he said. “Free water, free electricity, and free food were unavoidable expenses that the government had to make.”
He added that despite the circumstances, his government will do all it can to ensure that its developmental agenda will not be hindered.
The country’s dire economic situation and limited access to the international financial market have caused it to resort to domestic revenue mobilization options, including the controversial E-levy, which seeks to deduct a 1.75% tax on all electronic financial transactions.
The E-levy has been the subject of several discussions since it was first announced by the Finance Minister, Ken Ofori-Atta in December 2021 during the reading of the 2022 Budget.
The minority and majority caucuses in Parliament have failed to reach a consensus on whether to abolish or proceed with the E-levy.
While the minority are against it, the majority side has declared their support and intention to ensure its passage, arguing that, the country has no other option but fall on the E-levy to raise the required funds to support the country’s development.
