Following the presentation of the 2023 budget and financial update by Minister for Finance, Ken Ofori Atta, the minority caucus in parliament has declared that they will not accept the GH¢1.4 billion allocation as a contingency vault, that is included on page 209 of the 2023 Budget statement.
Their reason, according to the minority leader, Haruna Iddrisu, is that this allocation is an additional GH¢ 400 million, compared with last year’s allocation of GH¢993million, which cannot be happening in a period of austerity.
“We are also opposed to an allocation of GH¢10 million, for what has been strangely described as Defense Advisory Services. We also strongly denounce plans to increase the staff strength at the Office of Government Machinery by a staggering 1,570 at Page 230 of the 2023 Budget,” he said.
The Minority further stated that they do not see significant improvement in the attitude of the Majority side and if the sector Ministers do not turn up to lead the Budget process on their sectors, they will withdraw from the Budget process.
Mr. Haruna Iddrisu said the severely ailing economy has been characterised by unsustainable debt, very high inflation, unprecedented and disastrous depreciation of the cedi, high budget deficits and unprecedented credit rating downgrades.
The 2023 Budget, he reinstated, continues on the same spending trajectory that has led to the country’s collective economic doom.
Thus, he noted that instead of cutting down on non-essential expenditure, they have rather seen an increase with additional spending of up to GH¢82 billion.
Speaking on the National Cathedral, the minority leader said despite huge public outcry and in defiance of prudence, another GH¢80 million has been earmarked for the National Cathedral, which does not constitute a spending priority at this time.
“This will bring the total amount spent on the project to about GH¢420 million, the total amount of taxpayer funds so far spent. The estimated total cost of the project is around 400 million dollars. Is this project a national priority?” he quizzed.
On the e-levy, he emphasised that the position of the minority remains unchanged. To them, it is a setback to this cashless economy. “We are also astonished to learn in the Budget that the GH¢100 threshold for e-levy deductions has been abolished. You recall my suggestion of a 1% levy at a threshold of 500, which was out-rightly rejected by the Government at the negotiations.”
On inflation, Haruna Iddrisu mentioned that it has ballooned from 13% in January to over 40% in October, which has diminished the value of GH¢100 and, therefore, the exemption threshold for e-levy should be increased to GH¢200 and not removed.
The NDC, Mr. Iddrisu disclosed, has already stated their intention to abolish the e-levy when they come to power, but before then, they wish to serve notice that they will fiercely resist the removal of the GH¢100 threshold.
The majority leader also indicated that Inflation has also wreaked havoc on personal income taxpayers and, therefore, remove any justification for the introduction of the additional band of 35% as announced in the 2023 budget.
The majority leader concluded by stating emphatically that the NDC Minority Caucus in Parliament will vigorously oppose and refuse to entertain both the budget estimates and any bill on debt restructuring, until the following conditions are met;
The conditions are; “(a) The resignation of the entire Economic Management Team and in particular Alhaji Bawumia from his position as Chair of that obviously moribund body.
b) The immediate resignation or dismissal of the Finance Minister, Ken Ofori-Atta
c) Immediate reduction in the number of Ministers and political appointees at the Office of the President by half.
d) Removal of all non-essential expenditure in the 2023 budget including the GHS 80 million allocated to the National Cathedral
e) Reinstatement of the GH¢100 exemption threshold for e-levy payment”.
