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An Economist and Policy Analyst, Appiah Kusi Adomako, says Ghana wouldn’t have resorted to the International Monetary Fund (IMF) Deal if Covid-19 funds were managed judiciously.
According to him, Ghanaians wouldn’t also be paying so much taxes as they are doing now if the covid-19 funds were managed properly.
His assertion follows the delay in approval of Ghana’s IMF Programme.
The Auditor-General’s report on covid-19 funds revealed that GH¢19.11 billion was mobilised in 2020, GH¢1.97 billion mobilised in 2021 and GH¢753.32 million mobilised up to June last year to finance the Coronavirus Alleviation Programme and the implementation of the Ghana COVID-19 Emergency Preparedness and Response Plan.
Out of over GH¢21.84 billion mobilised, more than GH¢11.75 billion was spent on COVID-19 activities and the rest on budget support.
“On COVID-19 activities, we noted that GH¢8,658,496,124.96 was spent in 2020, GH¢3,084,311,725.45 in 2021 and GH¢7,875,208.70 in 2022 to mitigate the impact of the COVID-19 pandemic,” the Report stated.
According to the report, the $1 billion the government received from the IMF, equivalent to GH¢5.56 billion on April 22, 2020, to support the 2020 budget, was utilised on liability management, District Assemblies Common Fund fourth quarter allocation, NABCO second quarter allocation, LEAP programme first quarter allocation, Free SHS Programme allocation for second semester of 2019/2020 academic year, free water and electricity, and capitalisation of the Development Bank of Ghana.
The audit also established that $328.568 million, equivalent to GH¢1.98 billion, was disbursed to the Ministry of Health which was utilised on medical equipment, cleaning materials, medicines, consultancy, storage facility for the vaccines and deployment, life insurance, construction, leasing and renting of treatment and isolation centres, among others.
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Speaking at a forum dubbed,’Can Ghana Survive a no IMF Deal’, on Atinka TV’s morning show, Ghana Nie with Ama Gyenfa Ofosu Darkwa, Appiah Kusi Adomako said, “For the money we had, it is like doing a funeral and people coming to do donations. When you deduct the money you spent on the funeral, you do not spend the money on fries and meat, you keep that money for a rainy day.”
He continued, “When you examine covid-19 in 2020, the IMF’s special drawing right, the World Bank also came in, a number of other things also came in, and it appears that we were content and frivolously used those funds. When we look at the recent Auditor General’s report, it reveals that we were unable to manage the money that came in, and that if we had, we wouldn’t be in the position we are in now. As a result, the government has been forced to introduce three new tax measures, vat has been increased by 2.5%, and Ghanaians are paying more.
He admitted the importance of paying tax to develop a nation, adding that taxes must be progressive but in Ghana, taxes have become retrogressive rather, saying that the rich and the poor pay the same tax.
“I always say that the Government did not listen to advice. If it had listened to advice, we wouldn’t be here ,” he said.
Meanwhile, he was of the view that Covid-19 did not affect the economy as being indicated by the government.
Ghana| Atinkaonline.com| Porcia Oforiwaa Ofori