Economist at the University of Ghana Business School (UGBS), Prof Patrick Asuming says Ghanaians will not tolerate any new taxes from the government in the mid-year budget review.
The Ministry of Finance is expected to present a Mid-year-budget statement to Parliament on Tuesday 23rd July 2024.
Speaking to Starr News, the Economist indicated that there are positive comments from the Ministry of Finance such as no additional cash will be requested.
“If you look at how the budget implementation has gone in the first half of the year you will get the sense that, there have been some hints from the Finance Ministry that we shouldn’t be expecting new taxes. And it is unlikely that there would be an additional request for additional money to be spent.
“I think all of those are positive things and obviously, I don’t think Ghanaians would be in the mood to tolerate any new taxes given the multiplicity of taxes that we have in the last couple of years,” Prof Asuming stated.
Meanwhile. the Deputy Finance Minister, Dr. Alex Ampaabeng has hinted that the government will likely review downward its expenditure when the finance minister presents the mid-year budget tomorrow, July 23, 2024.
The World Bank at its release of the 8th Ghana Economic Update had cautioned the government against falling for the bait of undertaking unbudgeted expenditure during this election year, warning the action could derail the country’s economic recovery.
“If you look at the data showing the fiscal deficit from 2000, you conclude that whenever there is an election there is an overspending and then the number reduces subsequently only to relapse in the following year.”, Economist at the World Bank, Kwabena Gyan Kwakye explained
“So the question is what is going to happen in 2024”, he quizzed.
But the Deputy Finance Minister, Dr. Alex Ampaabeng in response assured the government will not overspend this election year hinting there would likely be a downward review of the expenditure budget for the year.
“For the first time in our history, there will be no supplementary budget tomorrow, and the government is committing to staying the course, and our expenditure without preempting is likely to be revised downward.” He responded to concerns about possible overspending.
Dr. Ampaabeng adds that despite ongoing tax revenue enhancement, the mid-year budget to be presented tomorrow will not have new taxes.
Source: Ghana/Starrfm.com.gh/103.5FM
