The President, Nana Addo Dankwa Akufo-Addo, says the government will find the needed resources to fund the country’s infrastructural projects despite the current economic difficulties.
Speaking at a meeting with some chiefs from the Dzodze Traditional Area in the Volta Region, Nana Akufo-Addo said the COVID-19 pandemic has dealt a big blow to the country’s fiscal situation.
He said with many citizens severely affected by the pandemic, the government was forced to make unplanned expenses such as providing free water, free food, free electricity, among others, to ensure that the economy does not totally collapse.
“Revenues during 2020, and 2021 went down considerably because of the slowing down of economic activities that came from the COVID, and at the same time government in order to keep the country going had to incur additional expenditure; free water, free electricity and free food, these were unavoidable expenses that the government had to make,” he said.
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.