An economist at the University of Ghana Business School (UGBS), Prof. Patrick Asuming, has said 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, July 23, 2024.

Speaking to Starr News, the economist indicated that there are positive comments from the Ministry of Finance, such as that 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 had 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 its expenditures downward when the finance minister presents the mid-year budget on July 23, 2024.

The World Bank, at its release of the 8th Ghana Economic Update, 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 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 that the government will not overspend this election year, hinting that 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 stay on 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.