Honorary Vice President of policy think-tank, IMANI Africa, Bright Simons has said the 2023 budget presentation by the Finance Minister is expected to signal a clear path towards economic recovery but worries that the decision to impose new taxes may hamper that development.
According to him, global investors and citizens are rather looking for signs of a credible fiscal plan spelled out by the government which is now seeking an IMF programme to restore macroeconomic stability.
In a series of tweets posted on November 23, Bright Simons expressed concern over government’s intention to increase consumption taxes on the already burdened citizen.
It has been widely reported that government plans to increase the Value Added Tax (VAT) for goods and services - a situation that could further compound economic woes.
Bright Simons has also questioned whether an evenly split Parliament, especially the Minority side, will throw their support behind a budget that seeks to impose more taxes on already burdened citizens.
He also indicated government's inability to consult civil society groups and other relevant stakeholders ahead of the 2023 budget before lawmakers on November 24, 2022.
“The government of Ghana intends to present its budget for 2023 tomorrow. Given the intensity of the economic crisis, investors globally are looking for signs of a credible fiscal plan out of the mess. The government intends to increase consumption taxes. The Parliament is evenly split,” he wrote.
“Anyone who reads bbsimons.com know my analysis of the biggest challenge ahead in resolving the crisis: social and political consensus. It is thus shocking that tomorrow the government expects the Opposition and civil society to support a budget it has not consulted anyone on,” Mr Simons added.
He continued, "Yet this haughty way of doing policy: adamantly ignoring inputs, dismissing feedback and doubling down when caution is raised, is exactly why Ghana is in this deep economic crisis. Clearly, there will be no change. Tomorrow's budget is thus nothing more than a MISSED OPPORTUNITY"
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— Bright Simons (@BBSimons) November 23, 2022
The govt of Ghana intends to present its budget for 2023 tomorrow. Given the intensity of the economic crisis, investors globally are looking for signs of a credible fiscal plan out of the mess. The govt intends to increase consumption taxes. The Parliament is evenly split.
2/
— Bright Simons (@BBSimons) November 23, 2022
Anyone who reads https://t.co/WLkV1OlOIq know my analysis of the biggest challenge ahead in resolving the crisis: social & political consensus. It is thus shocking that tomorrow the govt expects the Opposition & civil society to support a budget it has not consulted anyone on.
3/
— Bright Simons (@BBSimons) November 23, 2022
Yet this haughty way of doing policy: adamantly ignoring inputs, dismissing feedback & doubling down when caution is raised, is exactly why Ghana is in this deep economic crisis. Clearly, there will be no change. Tomorrow's budget is thus nothing more than a MISSED OPPORTUNITY
Meanwhile, Finance Minister, Ken Ofori-Atta, has been under intense pressure from members of the governing New Patriotic Party to resign over the current economic challenges which has impacted almost all economic indicators.
The Minority in parliament have also filed a censure motion against Ken Ofori-Atta on some seven grounds.
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