Government to borrow GH¢4.59 billion fresh loans in Q2 - Report

E-Levy rate revised to 1.50%

E-Levy deductions to start in May this year, Ofori-Atta

As part of plans to finance its 2022 budget, government is set to borrow an amount of GH¢4.59 billion in the second quarter, myjoyonline has reported.

This amount is higher than what was borrowed by government [GH¢3.78 billion] in the first three months of the year.

Monies from 91-day and 182-day Treasury Bills are what government will borrow from, the report stated.

According to the report, "the entire GH¢4.59 billion is expected to be mobilised from the domestic market per the Issuance Calender."

"In all, government plans to issue a total amount of GH¢24.69 billion, of which GH¢20.10 billion is to rollover maturities," the report added.

According to the Bank of Ghana, government expects the 2nd quarter calendar to meet the requirements of market participants.

Again, government is assuring all stakeholders and the public that it will continue to strive for greater predictability and transparency in the domestic bond market.

Meanwhile, the Monetary Policy Committee of the Bank of Ghana has increased the policy rate by 250 basis points from 14.5% to 17.5%.

The increase came on the back of rising inflation and also to restore the credibility of monetary policy to boost investor confidence.

E-Levy to widen country's tax net

Government has also introduced Electronic Transfer Levy (E-Levy) at a 1.5% charge to widen the country's tax net as well as increase domestic revenue.

Deputy Finance Minister, John Kumah, said government is targeting to generate GH¢4.5 billion by the end of December 2022.

This was a downward revision from an earlier GH¢6.9 billion target.

The minister explained the revised target was due to delays in securing parliament’s approval for the levy.

Meanwhile, Finance Minister, Ken Ofori-Atta, has disclosed that the implementation of the E-Levy will commence from May this year.

Watch the latest episode of BizTech below: