Recapitalise distressed state entities to propel growth – ICU to government

The Industrial and Commercial Union (ICU), Ghana is advocating a recapitalisation of all viable state entities which are struggling due to current economic challenges, to accelerate the country’s economic recovery.

Mr Morgan Ayawine, the Gen­eral Secretary, ICU, said although the recapitalisation of the National Investment (NIB) Bank with GH¢4 billion as captured in the 2024 budget statement of government was laud­able, there was the need to revamp other struggling state entities such as the Produce Buying Company (PCB), Aluwork Ghana and Neoplan Ghana Limited to propel the country’s growth.

Mr Ayawine stated this during a me­dia encounter with ICU, Ghana on its reaction on the 2024 budget in Accra.

Some of the areas the meeting discussed were on unemployment, tax reliefs and recapilisation of the financial sector.

He commended the government for plans in recapitalising the NIB, among others, to resuscitate the financial sec­tor saying that “we believe this gives NIB a new lease of life to continue its mandate of financial industries in the country for economic and progress.”

Mr Ayawine urged the government to scrap overtime tax which had been in existence for long time.

He expressed disappointment over the delay in the scrapping of overtime tax, adding that abolishing that tax would help reduce economic hardship on workers, adding that overtime helped to boost the pockets of work­ers and enhanced productivity.

The General Secretary said tax relief on sanitary pads, electricity vehicles, among others, although commendable, was not advantageous for workers.

He therefore, called on the govern­ment to formulate policies to tackle unemployment which had become a canker in the country.

‘Unemployment is becoming a dire situation in the country, government should put in place policies to deal with unemployment to address pov­erty and other social vices among the youth,” he added.

It is recalled that Ken Ofori-At­ta, the Minister of Finance, presented the budget statement dubbed “Nkun­im budget’ on the floor of Parliament on Wednesday, November 15, 2023.

The presentation was in line with Article 179(1) of the Constitution which mandates the President to “cause to be prepared and laid before Parliament, at least a month before the end of the financial year estimates of revenue and expenditure for gov­ernment of Ghana for the following financial year.”

At the presentation, the minister said the government had projected to spend GH¢226.7 billion (21.6 percent) of the Gross Domestic Product next year, in its bid to build back bet­ter, maintain macroeconomic growth and stability as well as create jobs for teeming youth.