Parliament Approves 2023 Budget Statement and Economic Policy

Parliament has passed the 2023 budget statement and economic policy after several debates and opposition from members of the Minority.

The house has been debating the budget statement since its presentation by the Finance Minister, Ken Ofori-Atta, on November 23, 2022.

On the final day of the debate, minority members expressed concern about some of the revenue-generating measures, such as raising the VAT rate to 2.5% and eliminating a threshold for the electronic levy.

However, Minority Leader Haruna Iddrisu restated his side’s demand for the government to let go of its decision to increase the VAT rate by 2.5% and remove the electronic levy threshold.

“Mr. Speaker, without going further, we in the NDC minority group will fiercely resist and fight the imposition of this additional tax on Ghanaians and Ghanaian businesses because, Mr. Speaker, it will only exacerbate and increase the hardship they’re already going through, increase the cost of doing business for many Ghanaians, and it will make it difficult for ordinary Ghanaians to cope.”

The majority leader, Osei Kyei-Mensah-Bonsu, explained that the 2.5% increase in VAT will be used for the construction of roads.

“About 25% of the questions that are asked in this chamber relate to roads. Some road construction has begun, and the intention is to ensure that they don’t deteriorate or are left unattended, so the 2.5% increase in VAT we have been told is primarily going to be used for road construction. If you don’t want your roads to be constructed, tell us that you don’t want your roads to be constructed,” he noted.

The Minority Caucus had earlier in a press conference expressed its disapproval of the government’s proposed debt exchange program, arguing that details of the program should have been captured in the 2023 budget.

The debate lasted until December 6, 2022, and the budget was subsequently approved.