2021 budget has no good news for workers – Haruna Iddrisu

The budget statement for the 2021 fiscal year has no provision for the Ghanaian worker, Minority Leader Haruna Iddrisu has said.

Rather, he noted, the budget is intending to make life difficult for workers following the introduction of new taxes for the year..

Speaking at a forum for the lawmakers in Ho over the weekend to discuss the budget statement, he said “Two important taxes are for my attention. One, sanitation and pollution tax. But Mr Speaker, we have a duty as parliament to work with the executive for the economy of Ghana to recover. That should be the challenge as we speak today.

“What do we do post COVID-19 Ghana in order that we can generate economic and investment opportunities that will spur growth for the Ghanaian enterprise and provide opportunities to address the growing unemployment in our country.”

The Tamale South MP added “The workers of Ghana do n0ot know what they fate is in this 2021 budget because minimum wage and public sector wages have not been determined and conclusively negotiated and determined.

“So whatever numbers you have for compensation budget is likely to grow and is likely to erode any gains that may be made.”

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.

“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,” the budget statement presented by the leader of Government Business, Osei Kyei Mensah Bonsu said among other things on Friday March 12.

It added that “to leverage other resources to fight the pandemic, Government passed the COVID-19 National Trust Fund Act, (2020), Act 1013 in April, 2020 to establish the Fund. As at 31st December, 2020, the Fund had mobilised GH¢ 57,134,093.58 of which GH¢45,218,313.23 had been utilized.

“These resources complemented Government efforts in providing PPEs and medical supplies to COVID-19 selected institutions, distribution of food items to the aged, vulnerable, and needy persons; providing vehicles to selected Treatment Centres, National Public Health & Reference Laboratories, Testing Centres, and the COVID-19 Central Care Management Team. It also supported the construction of the National Infectious Disease Centre.”