Electronic debit will not be used as security for government debt – Deputy Minister of Finance

Deputy Finance Minister John Ampotuah Kumah said the introduction of the Electronic Transaction Tax or E-Levy will not be used as collateral for government debt.

He says generating revenue from E-Levy will however be a game-changer in the government’s quest to close the infrastructure gap in the country.

He was responding to the concerns of a broken economy

Ghana’s debt is mounting as the country struggles with revenue mobilization and expenditure management.

Speaker of Parliament Alban Bagbin has already sounded the alarm that the government may struggle to pay public employees over the next three months.

Deputy Finance Minister John Ampotuah Kumah refuted the claims.

Addressing the inaugural ceremony of the Ashanti Regional Youth Parliament, Mr Kumah stressed that the government was not short of cash for being unable to pay civil servants.

“It is wrong to say that Ghana cannot pay its workers in the next three months. I would like to give the firm assurance that the workers will receive their wages.

“In the midst of COVID-19, workers received their wages. I don’t foresee such a lack of cash for critical payments,” he said.

Meanwhile, Mr Kumah says the introduction of the electronic transaction tax will not be used as collateral for government debts.

“We need income to build roads. We have a huge infrastructure deficit in our country. Road tolls gave the country 78 million cedis a year.

“The electronic direct debit was going to bring in about 6.9 billion cedis. If Ghana would set aside 1.5 billion cedis from the e-levy to build roads. This means that there is an increase in the capabilities of the IPC. Therefore, it is wrong for electronic direct debit to be used as collateral,” he said.