Economist and lecturer at CKT-UTAS, Bismark Osei, has noted that while the incoming government’s plans may provide some relief to Ghanaians, they must be approached with realistic expectations due to the pressing economic challenges the country faces.
Speaking to Mark Smith on A1 Radio, Mr. Osei emphasized the urgent need to address the national currency crisis, the growing energy debt, and other critical issues. He stressed that stabilizing the currency is vital for economic recovery. “One of the major problems the country is going to face is the issue of the currency. It is imperative for the government to take decisive action to stabilize it,” he remarked.
He also drew attention to the country’s energy debt of $1.2 billion owed to independent power producers, warning that failure to resolve this issue could lead to a resurgence of the debilitating power outages, commonly known as “Dumsor,” experienced in the past. “The energy debt crisis of $1.2 billion to independent power producers is a significant concern. The government must urgently raise the funds to address it, or we risk facing another Dumsor crisis,” he cautioned.
Despite these challenges, Mr. Osei expressed optimism about some of the president-elect’s 120-day promises, particularly those that require minimal financial resources. He noted that there are practical steps the new administration can take immediately to make a positive impact.
Addressing the controversial e-levy, a tax introduced to generate revenue for the government, Mr. Osei proposed reducing the rate from 1% to 0.5% instead of scrapping it entirely. “I believe reducing the e-levy to 0.5% would have a less significant burden on the public while still generating revenue,” he explained.
He estimated that this modest reduction could help the government raise as much as 10 billion cedis annually. Part of this revenue, he suggested, could be allocated to youth job creation initiatives, while the remainder could be used to tackle the country’s mounting debts. “With this approach, the government could raise a minimum of 10 billion cedis annually, which can support youth employment programs and address our debt obligations,” he added.
Mr. Osei advocated for this balanced approach, arguing that it would be more beneficial in the long term than completely abolishing the e-levy. “I hope the government opts for this option rather than eliminating the 1% entirely,” he concluded.
Source: A1Radioonline.Com | 101.1MHz | Gifty Eyram Kudiabor | Bolgatanga
