Budget 2021 to drive strong economic growth for Ghana — Dr. SK Frimpong

Economist and former lecturer at the University of Professional Studies, Dr SK Frimpong believed that the 2021 budget statement is a torchbearer in Ghana’s economic recovery process after last year’s global Covid-19 ravage .

Dr SK Frimpong, who is a technical economic adviser in the office of the vice president, further explained that the global covid 19 crisis has had a significant negative impact on the global economy, of which Ghana is no exception.

In an exclusive interview with News2dayonline, the licensed management consultant explained that “governments around the world are implementing various tax measures to mitigate the negative effects and bring relief to businesses and households.”

The budget with the theme; Consolidation, completion and continuation were pronounced by the Minister of Parliamentary Affairs on behalf of the President.

The 2021 budget statement and economic policy focused on the government’s approach to mitigate the effects of the COVID-19 pandemic on the Ghanaian economy.

According to the budget statement, the government is targeting a total revenue and subsidy of GH ¢ 72,452 million. The amount indicated is equivalent to 16.7% of the gross domestic product (GDP), against a result of 55,132 million GH ¢, or 14.3% of the GDP recorded in 2020.

The technico-economic adviser, Dr SK Frimpong, holder of a doctorate. in Industrial Economics from Wuhan University of Technology, China, found that the fight against the novel coronavirus has increased the cost of public spending by over 25 billion Ghanaian cedis.

According to him, the 2021 budget statement as read by the Acting Minister of Finance, the Honorable Osei Kyei Mensah Bonsu, is the pragmatic austerity measures for the country’s economic recovery.

The government announced tax breaks for Ghanaians in the 2021 budget statement. One of the tax breaks that has sparked debate among the public is the suspension of the quarterly vehicle income tax in the third and fourth quarters. of the year for commercial public transport operators commonly known as trotros and taxis. According to the government, this approach aims to reduce the cost of transport.