Workers express cautious optimism over 2023 Mid-Year Budget’s impact – Deloitte survey reveals
A recent survey conducted by Deloitte Ghana has unveiled a notable sentiment of caution among Ghanaian workers regarding the potential impact of the 2023 Mid-Year Budget on the nation’s economic growth. The survey, administered online and collating responses from 239 participants across six key industries based on Deloitte’s industry classification, provides a comprehensive insight into the prevailing economic outlook.
According to the findings, a mere 11% of the respondents expressed optimism about the forthcoming budget’s ability to spur positive economic growth. This subdued sentiment underscores prevailing concerns among workers about the effectiveness of policies aimed at driving the country’s economic trajectory.
Among the key areas of focus, respondents underscored the importance of initiatives to foster growth, with a strong emphasis on lowering the Value Added Tax (VAT) and encouraging greater participation from the private sector. A resounding 66% of those surveyed advocated for a revision of the VAT rate to alleviate financial burdens and stimulate consumer spending.
Addressing the matter of export promotion, the survey unveiled two crucial aspects deemed essential for success. The availability of credit facilities and reduced customs fees emerged as pivotal factors, with 59% of participants calling for a review of capital allowance deduction for specific vehicles, while 55% demanded the abolishment of the financial sector recovery levy.
Delving further into tax regulations, the survey highlighted that a significant majority of respondents (74%) believe a reduction in the corporate income tax rate to be the most effective measure in the quest for optimal economic outcomes.
In terms of indirect tax changes, participants expressed a strong desire for the scrapping of the COVID-19 Health Recovery Levy, signaling an eagerness to alleviate the pandemic-induced financial strain. Additionally, the call for a review of the VAT regime reinforces the need for a conducive taxation framework that bolsters economic resilience.
The financial services industry emerged as a key player in the survey, with a substantial number of respondents hailing from this sector. Deloitte suggests that this industry’s dominant representation could be attributed to its keen interest in ensuring that the government comprehends their economic expectations, particularly in the wake of the impact of the Domestic Debt Exchange Programme (DDEP) on the financial landscape. The DDEP served as a critical precursor for securing the International Monetary Fund (IMF) program’s approval, prompting heightened attention and scrutiny from financial services players.
As Ghana navigates the path towards a sustainable economic recovery, policymakers may heed the valuable insights gleaned from this comprehensive survey to craft pragmatic and targeted measures that address the nation’s economic challenges while promoting robust growth and resilience in the face of uncertainty.
