Analysis of the 2023 Budget (Final part)

There is no doubt that some government expenditures will be supported by grants from foreign countries. However, not every expenditure will be covered by grants. This explains why the government must find innovative ways of raising more revenue to cover its expenditures. If more revenue is raised, it will help the government overcome its numerous projects.

It is in this light that strenuous efforts are being made under the budget to raise more revenue for the country. Without adequate revenue, not much can be achieved by way of development project financing. It is, there­fore, necessary to raise enough revenue since the level of revenue raised in the country is not enough to satisfy our needs.

The destruction of water bodies in various parts of the country is threatening the lives of everyone residing here in Ghana. The de­struction of water bodies and the fight against illegal mining imply that additional expendi­tures will have to be made to fight the men­ace and clean up the destroyed water bodies.

REVENUE GENERATION MEASURES

In light of all these, certain revenue gener­ation measures have been instituted in the budget for the good of the country. As has been pointed out already, if more revenue cannot be generated, we will not be able to undertake and expand our development projects. This is one fact that we cannot run away from.

The E-Levy, which is meant to generate additional revenue for the government, has been reduced from 1.5 per cent to one (1) per cent. However, the GHC 100 daily thresh­old has been removed.

This has been described by the Minority in Parliament as a measure that will add to the hardship of Ghanaians. However, these measures are meant to generate more reve­nue, expand the revenue base, and also make it possible to use the revenue generated to finance our development projects.

Another important measure in the budget is the freezing of employment for civil and public servants for the 2023 financial year. While this is very painful, it must be made clear that government expenditures are already too high and that the government cannot, therefore, under­take additional expenditures in the form of employ­ment in the civil and public services. All these are being done to ensure that government expenditure is not thrown overboard. It is also a measure being undertaken to stabilise the economy so that, within the short to medium term, economic growth can bounce back and allow people to be employed in the public sector.

We are in very difficult times, so we need to take steps now to save the economy. If these cor­rective measures are not taken now, things will get out of control, so we need to bite the bullet with­out delay so as to help stabilise our national econo­my.

EXPENDITURES

It is equally important that steps are taken by the government to cut down on its expenditure. Already, the presidency and ministers are to see a reduction of their expenditures by 50 per cent. The purpose is to save some money for the economy.

In addition to that, the government will again cut down on imports by 45 per cent. The country cannot continue to be import-dependent, especially when many of these things can be produced locally. By being able to produce these things locally, the foreign exchange that will be used to import them will be saved for the country. Eventually, this will put less stress on the demand for the dollar. When this happens, it will help stabilise the country’s cur­rency against the major foreign currencies.

VALUE ADDED TAX

To be able to raise more revenue, the govern­ment has increased the Value Added Tax (VAT) by 2.5 per cent. Already, some politics is being played here by the Minority, who claim that it will make life unbearable for Ghanaians. The money being raised here, it must be noted, will not go into the pocket of any individuals. Rather, it will go into the Consolidated Fund, which will be used to finance the numerous projects to be undertaken in the country. If this is not done, then not much can be undertaken in terms of our developmental agenda.

In the same way, the use of V8 and V6 vehicles has been banned in towns except for travel to other regions. The use of V8s and V6s draws huge amounts of fuel, which adds to the cost of trans­portation in the country. In light of all this, these large vehicles have been banned from daily use except for travel purposes to the regions and other faraway places in the country.

DEMANDS OF POPULATION

In conclusion, the 2023 budget should not just be seen as any other budget but as one that is meant to raise enough revenue to overcome nu­merous expenditures. With the increase in popu­lation as well as the demands of the population, it has become necessary to raise enough revenue to cover all our items of expenditure.

The entire world is going through serious dif­ficulties. This means that as a country, we cannot depend on other countries to finance our develop­mental projects.

As a result, we need to find innovative ways of raising revenue to put up structures and implement programmes that will be of benefit to people in this country.

IMF BAILOUT

Ghana is already seeking an IMF bailout to stabi­lise its economy. The bailout will not be possible if we’re not able to prove to the IMF that we’re pre­pared to cut down on expenditure and at the same time raise enough revenue to cover our numerous expenditures.

If this is the case, then we must all support the budget so that at the end of it all, we will be able to undertake our own programmes. This is very important because the IMF exists to assist with and provide guidance for economic development, not to come in and solve a country’s problems for it.

There is no doubt that the year 2023 will be tough. However, we need to swallow the bitter pill today in order to stabilise our economic prob­lems and provide breathing room for people in this country.

REAL ECONOMIC GROWTH

If all these things are done, we will see real economic growth in the country, and the benefits that will come later will be in the best interest of every person. Many of us will go through the same difficulties, but we know that there will be light at the end of the tunnel, and this is why, after going through the budget carefully, we have come to the conclusion that the purpose of this budget is to halt economic decline, stabilise the system, and effect smooth economic growth for the entire country.

In light of this, we must all embrace the budget and support its implementation for the economic growth that is being envisaged by the noble people of this country.

Email address/whatsApp number of author:

Pradmat201@gmail.com (0553318911)

By Dr. Kofi Amponsah-Bediako