E-Levy is to promote ‘political free spending’ – Prof. Lord Mensah

Government does not want to be restricted in its spending – Economist

Some expenditure items can reduce to avoid E-Levy – Prof Lord Mensah

Govt should not great the impression that without E-Levy the economy would collapse – Economist

A senior lecturer at the University of Ghana Business School, Professor Lord Mensah, has said the government was so eager to pass the E-Levy because it wants the political free speeds to spend.

According to him, the government does not want to be restricted in its spending because currently without the E-Levy government's revenue was almost equal to its expenditure.

He said the government must put in measures to ensure that the country was in a good financial position.

However, he added that the government should not create the impression that without the levy Ghana's economy would collapse.

Speaking on Joy FM’s GhanaConnect which was monitored by GhanaWeb, the economist said the E-Levy “whether passed or not will not have much impact on this economy.

“Looking at the expenditure side of the budget, I mean clearly, you would see that there are some items that have been increased, but then also there is an item called others, which is the 7 billion. Let’s say that is swallowing the proceeds from the e-levy. Now if you take this into perspective, it gives you the picture that the e-levy is something that is coming to, excuse my language, promote that kind of political free spending,” he said.

Prof Lord further stated that the government has already made room for GH¢37.5 billion for interest payment and about GH¢35.6 billion as compensation to employees which are expenditures the government cannot tamper with.

He added that there are other expenditure items that the government can reduce so that there would be no need for the E-Levy.