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News of the Wednesday, July 31, 2019
Source: Ghananewsagency.org
2019-07-31
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The minority in Parliament said the nation would return to the International Monetary Fund (IMF) for a bailout given the country's financial challenges and the high level of its public debt.
According to them, the increase in the country's public debt from 120 billion GH in December 2016 to 204 billion GH in June 2019 and the decrease in the foreign exchange reserve would force the government to appeal to the IMF.
"It would not be surprising that Ghana is asking for a rescue from the IMF less than two years after the end of a similar program," said the minority.
Cbadiel Ato Forson, a prominent member of the Finance Committee, during a meeting with the media in Parliament Tuesday, said the meeting aimed to report on the badessment of the minority and its reaction to the mid-term budget review previously presented by the Minister of Finance to Parliament. during the week.
Mr Forson said the mid-year budget clearly showed that public finances were in a desperate situation and that the use of additional fiscal measures indicated difficult times.
He described the policies adopted by President Akuffo-Addo as populist, adding that they had reached a complete cycle and that they were defeating all the gains from fiscal consolidation before the NPP took office. .
"It has become clear that the nuclear power plant does not intend to keep its promises on borrowing and public debt, imposition of taxes and adjustments of the price of gasoline. "
Mr. Forson said the mid-year budget presented by the Minister of Finance foreshadowed difficult times for all Ghanaians.
He regretted that less than a year after the exit of the Ghana IMF program, the country's public finances were seriously derailed.
He urged the Akuffo-Addo government to change course otherwise they would plunge the economy into much bigger challenges.
Mr John Jinapor, former deputy minister of electricity, said the minority had the intention to oppose the increase in taxes levied by the government on the oil sector.
He said that there was no justification for imposing new taxes, arguing that the reasons given for the adjustments were unsustainable.
"You can not oppose the Energy Tax Act (EPA) two years ago and suddenly become a promoter," he said.
Jinapor said the government had not accounted for 900 million GH of the 1.5 billion GHG removals made by the HALS, leaving only 600 million GHC in the account.
He added that in the context of the ESLA increases, an average increase of 25% was imposed on the support tax for the production of electricity and infrastructure, the road fund financing tax and the price stabilization tax. and recovery.
He added that as soon as the new taxes come into effect, consumers would pay almost 1 billion gallons of gasoline and diesel, as well as 1.7 billion pounds on a 14-kg bottle filled with gasoline.
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