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Gov’t to shut down; no salaries for almost 700,000 public sector workers – Ofori-Atta.

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Gov’t to shut down; no salaries for almost 700,000 public sector workers - Ofori-Atta. 56

Ken Ofori-Atta is warning about the serious implications of the continued delay in the approval of the government’s fiscal policy for 2022, saying, that is going to force the government to shut down.

If it so happens, there would be no salaries for the almost 700,000 workers on the government’s payroll, including doctors, nurses, teachers, personnel of the security services and the others.

The minority side of the aisle in parliament are demanding that adjustments be made to the government’s 2022 Budget Statement and Fiscal Policy before they vote for it.

The Finance Minister has indicated that some modifications have been made to address some of the concerns the minority side is having with the budget.

Not only that, they would continue to engage the minority and other stakeholders including the telecommunication network operators, on the proposed electronic transaction tax – e-levy, something that appears to have become the main sticking point, to find a common ground and get the e-levy approved.

Mr. Ofori-Atta has been making a strong case for the e-levy, saying it represents a great opportunity to widen the tax net, to boost domestic revenue.

A renowned economist, Kwame Pianim, has however kicked against the e-levy and he is calling for the government to shelve it.

He is warning that the proposed implementation of 1.75 percent tax on electronic transactions beyond Ghs100 a day, could potentially undermine the tremendous progress achieved by way of financial inclusion of those who were not saving their monies with the banks.

“The government has to take a step back from the brink, listen creatively to the pain of our people and focus on providing a caring administration and preserving national cohesion and keeping the economy on an even keel in these stormy weathers.”

He adds that the people were already finding the going tough, struggling to survive and therefore the government should rather focus on “expenditure cuts and husbanding our scarce resources”.

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