The Deputy Minister for Trade and Industry, Dr Stephen Amoah, has said the only way to restore the country's fiscal policy is to generate revenue internally.
He noted that the best way to stabilise the economy as it stands is by increasing taxes.
In an interview with GhanaWeb Business on his expectations ahead of the 2024 Budget to be presented by the Finance Minister in Parliament today, he said, "If I were the Finance Minister, there should be increase in taxes. You see, our brothers from the NDC they know that the only way out now to restore and consolidate our fiscal policy is to generate revenue internally".
Several trade unions, economists, and stakeholders in the business community have also shared their expectations ahead of the budget.
They believe the government must not introduce new taxes in the budget but must implement critical measures to address the tax system, adopt innovative revenue generation measures, and chart a path towards debt sustainability, among others.
The Member of Parliament (MP) for Nhyiaeso disagreed, arguing that the nation's excessive borrowing has had a significant impact on debt to GDP. Dr. Stephen Amoah said it was long overdue for the years of borrowing to cease.
"How are we going to generate revenue internally to solve our problems? Either we borrow or we take taxes. Now we've borrowed so much that our debt to GDP is high. So we cannot continue borrowing at that alarming rate."
"The option to help this country to move on is to increase taxes. Tax increment is a bitter pill that we need today to save this country. If not, they [NDC] should tell us a third option," he told GhanaWeb Business.
To further buttress his stance, Dr Amoah likened economic management to the treatment of a disease noting that it takes the right "steps and prescriptions" to cure the poor economic situation the nation has been plunged into.
"Economic management is like a disease. When you're diagnosed, there are steps and prescriptions made. The right financial economic prescription today is to increase revenue and we cannot be taking loans like the way we've been taking loans for the past 40 years because of our situation. So either we don't do and destroy this country or we cope with the situation today and save Ghana."
Background
The Minister of Finance, Ken Ofori-Atta is presenting the 2024 Budget Statement and Economic Policy document to parliament today, November 15, 2023.
This is per Section 28 of the Public Financial Management Act, 2016 (Act 921) which requires the minister to provide the mid-year fiscal policy review of the Budget Statement and Economic Policy of the government.
In a statement issued on November 14 and sighted by GhanaWeb Business, it noted that the crucial economic policy has been developed to support the implementation of the IMF-backed Post-COVID-19 Programme of Economic Growth (PC-PEG).
The Ministry added that the budget will also highlight, among other things, the performance of the economy, efforts to boost the productive capacity of the economy through the new Growth Strategy, fiscal measures, and debt management strategies to deepen stability and promote growth.
Stephen Amoah, Member of Parliament for Nhyiaeso