Minister for Information, Hon. Kojo Oppong Nkrumah has disclosed that the Akufo-Addo government as parts of the post-Covid-19 recovery program to restore the economy will come up with some fiscal measures to generate revenue internally.
Briefing the media at Peduase Lodge after three days cabinet meeting, the Ofoase-Ayirebi Member of Parliament bemoaned that many of the economic sectors were affected due to the fact that the government limited the movement of individuals and businesses to curtail the spread of the Covid-19 pandemic.
The Information Minister added that the economy suffered greatly as a result of the Covid-19 response program to provide free water and electricity as well as purchase personal protective equipment; hence, the economy could not thrive as we could not generate more revenues.
“Many of the economic sectors were affected due to the fact that government limited the movement individuals and businesses and so they could not thrive and generate the revenue they ought to have gained and pay their taxes for the development of the country”, he disclosed.
“The government, therefore, has to go and borrow money to support the nation with free water and electricity. Some of the money was used to purchase Personal Protective Equipment and also purchase medicines for the treatment of the Covid-19 patients and so the economy is suffering”, he stressed.
He again mentioned that the country’s debt to GDP ratio has gone beyond 70 per cent as a result of the Covid-19 response program but it does not mean the country has moved into HIPC.
“We are not a poor country and so we cannot move to HIPC but it is true that our economy is suffering due to the Covid-19 pandemic”, he confessed.
“Therefore, there is the need to mobilize revenue and begin to use some of the money to clear our debts and inject some of the money into sectors of the economy that have been affected due to the Covid-19 pandemic so that they can stand on their own. Some of the economic sectors may need non-fiscal measures”, he indicated.
He, therefore, mentioned that Hon. Osei Kyei Mensah-Bonsu will on Friday come out with the specifics as to how the government will mobilize revenue to boost the economy; thus, encouraging Ghanaians to make their minds to support the government to look for resources internally.
“We all have to begin to make our minds that where we have reached, there will be the need to internally look for resources because we cannot continue to borrow always. So, whatever we will do to mobilize some revenues to push the economy forward, we will find a way to do it”, he disclosed.
Source: Daniel Adu Darko/Peacefmonline.com
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