Connect with us

NEWS

Budget 2022: Minority says Tax Projections unrealistic

Published

on

The Minority in Parliament has cast doubts over the credibility of revenue projections made in the 2022 budget, questioning the ability of the government to meet its GH₵100.

5 billion targets of which GH₵80 billion will be from taxes.

Speaking on the floor of Parliament to debate the 2022 Budget Statement and Economic Policy, the Member of Parliament (MP) for Ajumako Enyan Esiam Constituency, Mr Cassiel Ato Forson said the projections which showed a 45 per cent increase in tax revenue from the previous year was unprecedented and unrealistic.

“In nominal terms, the government is seeking to raise GH₵25 billion additional revenue in taxes,” he said.

With the realisation of GH₵6.9 billion from electronic transactions, about GH₵1 billion from the introduction of benchmark value and 2.5 billion from the introduction of compliance measure which was normally not costed in the budget, the tax projections, he said, had still been over projected by GH₵10 billion, representing two per cent of Gross Domestic Product (GDP).

He warned against the practice of over projecting revenue as that could deteriorate the public debt situation while fiscal deficit projected to become 12.1 per cent by the year, the ending could reach 13 per cent.

“In fact, I project that we will end the year 2021 with a public debt of GH₵355 billion Ghana Cedis, representing 81 per cent of our GDP. The highest since HIPC,” he said.

Mr Ato Forson said if the current projections were not corrected in the budget, the woes of the Ghanaian economy would be “sick from what we call stagflation with acute debt overhang syndrome.”

He explained that the state of the economy would show a slow real sector growth and high unemployment, posing a security threat and high inflation that is pushed by rising fuel prices and the high cost of food.

The debt overhang situation is reflected in 2021 where GH₵34.4 billion was used to service debt, representing 93 per cent of revenue generated.

According to the budget, GH₵37.1 billion was collected as revenue with GH₵25.3 billion used to pay interest on loans and GH₵9 billion for amortisation within the nine months from January to September.

He further raised concern over how the government intended to meet its GH₵55 billion revenue target for 2021 by indicating that the trajectory of revenue generation showed that about GH12.3 billion was averagely raised quarterly for this year.

The ability of the government, therefore, to raise GH₵18 billion to meet targets for 2021, he said was unrealistic as that would require raising more than 50 per cent of revenues generated quarterly.

“I am aware there are seasonality and revenues perform better at the end of every year but the evidence before us suggests that revenue increase by about 20 per cent so how come you are projecting that revenue will increase by 50 per cent,” he added.

The MP for Damongo, Samuel Abu Jinapor, Minister for Lands and Natural Resources, noted that the content of the budget, including its tax projections, must be debated within the context of the current situation around the globe due to the COVID-19 pandemic.

He said the economy was recovering based on the Bank of Ghana composite index economic activity data released on Monday, which showed an annual growth rate as of September 2021 of 11.2 per cent compared to 10.8 per cent in 2020 and 4.2 per cent in 2019.

Despite all hardship experienced in the country as a result of the pandemic, the GDP growth rate stands at 3.5 per cent compared to 3.4 per cent of 2016-the highest of the previous government, he said.

Source: GNA

NEWS

National: 2023 Budget: TUC to reject government’s salary projection of ₵44.9m

Published

on

By

Deputy-General-Secretary-of-the-Trades-Union-Congress-TUC-Joshua-Ansah

After several attempts to reach an agreement with government over an increment in their base pay, the Trades Union Congress (TUC) is expected to meet government on Wednesday to finalise a deal.

But before that meeting gets underway, the Trades Union Congress is warning that it will not accept government’s projections in the 2023 Budget.

The Finance Minister, Ken Ofori-Atta, reading the 2023 Budget in Parliament projected compensation of employees at GH¢44,990 million (5.6% of GDP).

Earlier, government also proposed a 12% salary increment during the last negotiation with Organised Labour but it was turned down.

 

Speaking on JoyNews’ PM Express on Tuesday, Deputy General Secretary of TUC, Joshua Ansah stated that they would not agree to the projected figure.

According to Mr Ansah, government must expect a fight if they turn up at the meeting with the same proposal.

JoyNews/AdomNews · TUC to reject government’s salary projection in 2023 Budget
“There is no way Organised Labour is also going to accept what has been put in the budget. Well, if the government has made up its mind that it is the way it thinks that he can actually force down the throat of workers, then we are in for a big fight, because there is no way government can pay anything below what we are expecting,” he said.

He noted that Organised Labour will not compromise on their demand for 60% increment in their base pay.

Meanwhile, the President of the Ghana Medical Association, Dr. Justice Yankson says government has created a problem by not reaching an agreement with the labour unions earlier.

JoyNews/AdomNews · Dr Yankson on organised labour and government’s negotiations
He believes the current mess could have been prevented.

“These are some of the problems that sometimes we create for ourselves. We had a whole period in which we could have sorted these things, we waited to the last end. Now we can see that we are on a collition course, it is clear,” he said.

Source: Myjoyonline

 

Continue Reading

NEWS

Politics: Wenchi High Court throws out petition against NPP MP’s 2020 election victory

Published

on

By

A Wenchi High Court has thrown out a petition against New Patriotic Party (NPP) legislator in the Techiman South 2020 election.

The petitioner was seeking the nullification of the poll which saw the NPP candidate, Martin Agyei Mensah Korsah, emerge victorious.

But at the hearing Wednesday, the court explained that the NDC 2020 Parliamentary candidate, Christopher Bayere, who was pursuing the matter, failed to prove the burden of petitioning.

The court was attended by some leaders of the NDC including General Secretary, Johnson Asiedu Nketia.

Wenchi High Court throws out petition against NPP MP’s 2020 election victory
He was sighted leaving the court premises a few minutes before the judgement.

The NDC Parliamentary candidate had contested the EC’s verdict which gave the NPP’s candidate victory with 49,682 votes representing 50.2 percent of the total valid votes cast, whilst the NDC’s candidate had 49,205 votes representing 49.8 percent of the total valid votes cast.

The NDC Parliamentary candidate insisted that the figures were not a true reflection of the election.

According to him, per the pink sheets of the NDC agents at each of the 267 polling stations, he garnered 50,306 votes in the Parliamentary election whilst the 1st Respondent polled 50,013 votes.

Wenchi High Court throws out petition against NPP MP’s 2020 election victory
Electoral Commission fined in 2021

In August 2021, the Electoral Commission of Ghana was fined GH¢4,000 by the court after the Court refused to grant the EC’s request for a stay of proceedings in the dispute on July 30, 2021.

Wenchi High Court throws out petition against NPP MP’s 2020 election victory
The EC’s application for a stay of proceedings was to enable it to file a motion to challenge the ruling of the Court at its previous sitting, when it granted the petitioner a motion to amend the title of the writ.

TCounsel for the EC, Emmanuel Addae said the stay of proceedings was to enable him to file supplementary statements in support of the application filed by the National Democratic Congress (NDC) candidate, Mr Christopher Beyere Baasongti.

However, reacting to the EC’s stay of proceedings, the Counsel for the petitioner, Justin Teriwajah argued that the motion was frivolous and unnecessarily geared towards delaying the adjudication of the case.

Source: Myjoyonline

 

Continue Reading

NEWS

Football: Asamoah Gyan’s run, Bagbin’s dance and Black Stars fans’ clean-up as fans celebrate S. Korea win in style

Published

on

By

It was the much-needed win for Ghanaians who were largely sitting on tenterhooks for the final quarter of the game.

And from the reactions, after the South Koreans netted a quickfire double between the 58th and 61st minutes, something had to definitely happen.

Kudus rose to the occasion, found himself at the end of a Gideon Mensah cross and curled the ball past the goalkeeper to restore Ghana’s lead and eventually sealed the game for Black Stars.

Asamoah Gyan’s run, Bagbin’s dance and Black Stars fans’ clean-up as fans celebrate S. Korea win in style
The 68th-minute winner triggered a thunderous celebration across the country and on social media.

Despite late attempts from the Koreans, the game ended 3-2 with Ghana earning a vital win in Group H.

Asamoah Gyan’s run, Bagbin’s dance and Black Stars fans’ clean-up as fans celebrate S. Korea win in style
Alban Bagbin

The jubilation started right from Ghana’s legislative arm where the Speaker, Alban Bagbin was caught on camera dancing to one of the goals on the day from his office.

The ecstatic Speaker punched the air while clad in his Black Star jersey in the company of other officials of the House.

Asamoah Gyan runs

Former Black Stars captain, Asamoah Gyan was on punditry duty at SuperSports TV.

However, the ethics of being on a live set could not suppress his excitement when the deciding goal was scored.

Filled with elation, the former skipper run out of the set in jubilation shouting atop his voice.

His iconic goal celebration was his response when asked about his reaction to some moments of the game.

Fans in clean-up mode

Now, supporters of Japan’s national team have been earning praise in Qatar for their zeal toward cleanliness after each game.

This win seems to have presented Ghanaian fans with the opportunity to emulate this off-pitch tradition.

While many celebrated the win at full-time, other fans were seen moving boxes around to collect the waste left by their colleagues.

South Korea’s Son not in selfie mood

Another interesting sight came from an official from the Ghana dressing room posing for a selfie.

The subject Son Heung-min was almost in tears after his team lost at full-time.

Otto Addo’s side will now face Uruguay in their last game looking to secure qualification to the next stage of the competition.

Source: Myjoyonline

 

Continue Reading

Trending