- November 24, 2022
- Posted by: Amos Ekow Coffie
- Category: Economics
The Finance Minister Ken Ofori-Atta has told Parliament that the drop in the strength of the local currency against the major trading ones especially the Dollar affected Ghana’s debt stock.
He said this during the presentation of the 2023 budget statement on Thursday November 24
“Depreciation of the cedi added to the debt stock, he said.
He further assured Parliament and Ghanaians in general that every dime that is collected in the form of taxes will be spent well by the government.
Presenting the 2023 budget statement in Parliament on Thursday November 24, he said “There will be fiscal discipline, every pesewa will be spent well.”
He further proposed in the 2023 budget presentation an increment in the Value Added Tax (VAT) by 2.5 per cent.
The standard VAT rate is 12.5%, except for supplies of a wholesaler or retailer of goods, which are taxed at a total flat rate of 3%.
The proposal to increase the rate forms part of the seven point agenda to revitalize the economy, the Finance Minister told Parliament on Thursday November 24.
The seven-point agenda is ‘Aggressively mobilize domestic revenue; Streamline and rationalise expenditures; Boost local productive capacity; Promote and diversify exports; Protect the poor and vulnerable; Expand digital and climate-responsive physical infrastructure; and Implement structural and public sector reforms.’
He also announced that the government will undertake major structural reforms in the public sector.
Regarding the economic challenges, he told Parliament that the government was determined to change the narrative after admitting that the country has been going through troubles.
“The government is determined to change the negative narrative and rebuild for a better future,” he said.