MPs Divided on Expectations Ahead of 2024 Mid-Year Budget Review
A cross-section of Members of Parliament, both from the Majority and Minority sides, have expressed varying expectations ahead of today’s budget presentation.
Finance Minister Dr. Mohammed Amin Adam is scheduled to present the 2024 Mid-Year Budget Review in Parliament on Tuesday, July 23, 2024. This presentation is expected to provide updated financial plans and an economic outlook for Ghana. It will also include the status of major government initiatives and adjustments to revenue measures, expenditure controls, and financing based on half-year data.
The Member of Parliament for Dormaa East, Paul Apreku Twum-Barimah, expressed confidence that the government will not introduce any new taxes. Instead, he anticipates a briefing on the progress of the country’s Extended Credit Facility with the IMF.
He also expects updates on the Covid-19 levies and advised the government to consider directing the funds generated from these levies to support SMEs and hospitality companies that were significantly impacted during the pandemic.
“I am confident there will not be any new taxes. I expect an update on the progress of the IMF Extended Credit Facility. The finance minister should inform us about the Covid-19 expenditure, how much has been accrued, and how these funds will be utilized. I believe they should be directed towards supporting SMEs and hospitality companies that suffered during the Covid outbreak,” he stated.
The Member of Parliament for Navrongo, Sampson Tangombu Chiragia, lowered his expectations for the budget. He emphasized that the government should follow through on its promises by canceling some taxes and implementing strategies to stabilize the cedi against the dollar to revitalize the economy.
“I expect the government, particularly Vice President Bawumia, to cancel some taxes as promised; the Covid taxes should go, and the e-levy needs to be addressed. Inflation is rising, food prices are increasing, and people are struggling to survive. The government should tell us what they are doing to stabilize the cedi and control inflation,” Chiragia remarked.
John Oti Bless, the Member of Parliament for Nkwanta North, stated that the government has consistently failed to meet the expectations of Ghanaians, and he does not anticipate any significant economic turnaround.
“I am not expecting anything new. This government has failed in all aspects. The minister’s statement is just routine. Conditions are worsening daily, and there is no magic solution; the government cannot change the fortunes of this country,” he asserted.
Ghana is currently under an IMF program, and last month, the Fund’s executive board approved the second review of Ghana’s $3 billion loan program, allowing for the immediate disbursement of around $360 million. This decision followed Ghana’s finalization of a deal with its official creditor committee, a prerequisite to unlocking the second tranche of funds.
The new tranche will bring total IMF disbursements under the three-year bailout program, designed to help Ghana out of its worst economic crisis in a generation, to $1.56 billion. Ghana sought financial support from the IMF in 2022 as its cedi currency tumbled and inflation soared amid spiraling debt-service costs following years of overspending, the COVID-19 pandemic, Russia’s invasion of Ukraine, and high global interest rates.
Although the economy has since stabilized, with last year’s economic growth surprising at 2.9% and the first quarter of 2024 seeing a growth of 4.7%, inflation has slowed from a peak of over 54% in December 2022 to 23.1% last month. However, the cedi currency has continued to depreciate.
