A Deputy Finance Minister, Dr. Stephen Amoah, has urged Ghanaians to exercise patience as the positive improvements in the economy gradually translate into better living conditions.
He acknowledged the concerns of many citizens that the growth in macroeconomic performance often does not immediately impact workers’ incomes and daily lives.
Speaking at a technical briefing session organized by the Ministry of Finance following the mid-year budget review presentation to Parliament, Dr. Amoah explained that Ghana’s predominantly informal, Small and Medium-sized Enterprise (SME)-led economy responds slowly to macroeconomic improvements, including inflation.
“The government always talks about figures when it comes to improvement in the economy, but Ghanaians say inflation is not in our pockets, and it’s not that you’re lying, it’s true. You don’t feel it readily,” Dr. Amoah stated.
He noted that the slow impact of economic growth on daily life is due to the nature of the economy, where approximately 90% of businesses are SMEs.
“When, for example, the economy moves forward 10%, it takes a very slow pace to take effect,” he added.
Dr. Amoah assured that the government is committed to sustaining the recent economic gains achieved through the country’s homegrown program under the ongoing $3 billion International Monetary Fund (IMF) loan-supported facility.
He highlighted the government’s efforts to provide financial and technical support to targeted businesses through the GHS8.2 billion SME Growth and Opportunity initiative.
This initiative aims to support impact-driven SMEs with significant financial assistance to facilitate expansion and job creation.
“SME GO initiative targets a small number of impact-driven SMEs and gives them large sums of money so that they can expand and employ more people. By doing that, we’ll inject some amount of sustainability in the job space,” Dr. Amoah explained.
Call for non-partisan approach to taxation
Dr. Amoah also emphasized the importance of a non-partisan approach to taxation, urging all political parties to cooperate in ensuring that the country earns the necessary revenue to fund its development projects.
He expressed concern that the two dominant political parties – the New Patriotic Party (NPP) and the National Democratic Congress (NDC) – have historically used tax issues to discourage compliance when in opposition.
“I’ll admonish that we’re careful with NPP/NDC because depending on which one is in opposition, tax is not good. When NPP is in power tax is not good- NDC incites you, and when NDC is in power, tax is not good – NPP incites you,” he said.
Dr. Amoah called for collective action and unity to build the nation, stating, “Without that, all these great jobs we’re doing would not yield results.”
