The Ghana Union of Traders Association (GUTA) has called on the Ministry of Finance to outline measures to stabilize the Ghana cedi against major currencies as it presents the mid-year budget.
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 Association is concerned about the cedi’s impact of the decline on their operations and the overall economy.
“You know that we have been talking about the cost of doing business being high in this country. Because of the numerous taxes, we have to contend with. Especially with the clearance of goods at the port. So these are basically what the business community contends with.
“If you look at the current depreciation of the Ghana cedi our local currency, it is also not helping the growth of businesses and then you can’t predict or you can’t forecast, and all that”, the President of GUTA, Dr. Joseph Obeng stated.
He continued: “For now, there is seeming stability and what we expect from the Finance Minister is to bring up measures that can sustain and stabilize the cedi. That’s the surest way to help the growth of businesses in the country.”
However, 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
