2021 budget designed to lift Ghana out of challenges imposed by COVID – Alan Kyerematen

Trade Minister, Alan Kyerematen has said that the 2021 budget statement presented by Leader of Government Business Osei Kyei Mensah Bonsu gives clear strategy that is designed to lift this nation out of the various challenges imposed on Ghanaians by the COVID-19.

In a brief statement Mr Kyerematen said “Yesterday in Parliament, we witnessed the presentation of a clear strategy that is designed to lift this nation out of the various challenges imposed on us by the COVID-19.

“The Akufo-Addo led Government in 2021 will continue restoring economic fundamentals, building industries and creating jobs to ensure ‘cash-for-the-people’ thereby improving the livelihood of Ghanaians.

“Hon. Osei Kyei-Mensah-Bonsu did a good job presenting the 2021 budget and economic statement and deserves to be applauded.”

The government is proposing in the 2021 budget statement the introduction of a Covid-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate to support expenditures related to Covid-19.

Mr Kyei Mensah Bonsu said “To provide the requisite resources to address these challenges and fund these activities, government is proposing the introduction of a Covid-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate to support expenditures related to Covid-19.”

Regarding other sectors of the economy, the budget pegged Ghana’s fiscal deficit at 13.7 per cent of Gross Domestic Product (GDP).

This deficit, according to the budget, include the cost of the financial sector cleanup up.

“The fiscal deficit including the financial sector cost for 2020 is 13 .7 per cent of GDP,” the budget said adding that “it was financed from both domestic and external sources.”

Regarding Ghana’s debt stock, the budget said the debt rose from 122billion in 2019 to 291.6billion as at the end of December 2020.