2021 budget full of hope; meant to direct progress – Gov’t

The Minister for Parliamentary Affairs and caretaker Minister for Finance, Osei Kyei-Mensah-Bonsu has said a blueprint of bold policies and programmes has been laid to revert the economy onto the path of transformational growth and ensure prosperity for all Ghanaians after series of havoc the coronavirus has wreaked on the country.

According to him, the 2021 Budget and Economic Policy Statement is aimed to raise more revenue from the public, grant tax rebates to businesses and increase spending on infrastructure and productive sectors in a burden-sharing effort meant to pull the nation out of the clutches of the pandemic and “to bring an end to the culture of unfinished projects.”

“The main focus of the government for this year is the fulfilment of existing commitment and the completion of existing projects,” Kyei-Mensah-Bonsu said while presenting the 2021 budget in Parliament on Friday, March 12, 2021.

Ongoing works

Mr Kyei-Mensah-Bonsu further stated that works on the Pokuase and Obetsebi Lamptey Circle Interchanges were expected to be completed by the end of 2021.

Besides, he said ongoing works on the construction of bridges in the Northern Regions were 97 per cent complete. The bridges are located in Kulun, Garu, Ambalara, Kulungugu, Doninga and Sissili.

Furthermore, the minister said Public Private Partnerships (PPP) programme for the financing, construction and management of four projects were at different stages of preparation.

The roads are Accra –Tema Motorway, Accra –Cape Coast –Takoradi, Accra –Kumasi, and the Tema Arterial roads.

Raising funds

The minister further outlined how the government intended to raise funds to meet its expenditure target.

He said the amount would be the wage bill, interest payments, COVID-19 related expenditures, security and funding of government flagship programmes.

“Despite the substantial progress made by the Akufo-Addo Government, there is the need to find additional resources to cover the excess capacity charges that have resulted from the Power Purchase Agreements (PPAs) signed by the previous Government which required payments for capacity charges even when the plants involved were idle or unutilised.”

“Mr. Speaker, it has become very necessary for Government to consider a review of the energy sector levies. The Energy Sector Recovery Levy of 20 pesewas per litre on petrol/diesel under the ESLA is hereby submitted to this House for approval”.

Spending request

To achieve that, he sought approval from Parliament to spend GH¢113.75 billion, equivalent to 26.2 per cent of the country’s gross domestic product (GDP) in the 2021 financial year to effectively roll out its policies.

Christened, ‘Wonya Wohie’ Budget, literally meaning “We are moving forward”, the government intends to use its policies which are also meant to restore hope and confidence in the people to increase GDP growth to five per cent by the close of the year.

It was on the theme: “Consolidation, completion and continuity,” and was the first by President Nana Addo Dankwa Akufo-Addo after he won a re-election bid in the December 2020 general election.