Claims That COVID-19 Related Expenditure Cost GH¢1.7 Billiion Inaccurate – Government
The government has described as false reports that it spent only GH¢1.7 billion on COVID-19 related expenditure. According to the government, it spent a total of GH¢19 billion on the pandemic.
It follows a Joy News’ publication claiming the government only spent GH¢1.7 billion contrary to the GH¢19 billion quoted in the 2021 budget statement and economic policy.
However, a statement issued by the Ministry of Finance in Accra on Friday 19th March 2021 refuted the claims adding that the GH¢1.7 billion quoted by the media house represents expenditures on only two items under the COVID-19 related expenditures.
“The Ministry’s attention has been drawn to media publications claiming that government spent GH¢1.7 billion on the COVID-19 pandemic, even though the government says it spent GH¢19 billion. The Ministry hereby informs the general public that these publications are incorrect. The GH¢1.7 billion reflects expenditures on only two items under the COVID-19 related expenditures, namely, COVID-19 Alleviation Programme 1 (CAP1) and Emergency Preparedness and Response Plan 1. Other COVID-19 expenditures were Covid-19 Alleviation Programme 2 (CAP2), COVID-19 Preparedness Plan 2, Provision of Health Infrastructure, Seed Fund for Capitalisation of Development Bank, among others” it said.
The statement said as of end-December 2020, Ghana incurred a revenue shortfall of GH¢11,942.7 million and an expenditure increase of GH¢14,074.2 million in relation to their respective targets in the 2020 Budget passed in Parliament in November 2019.
It also clarified reports suggesting that the COVID-19 levy will be used in paying for the 2020 COVID-19 free water and electricity expenditure stating that the newly approved levy is not a direct charge for the 2020 freebies and should not be misconstrued.
“The Ministry also notes media reports suggesting that the government has announced COVID-19 levy to be utilized in paying for free water and electricity of 2020. Again this is incorrect. The Minister of Information’s comment to the effect that covid-19 expenses include water and electricity ought not to be misconstrued to mean the new taxes of 2021 are a direct charge for those services,” the statement added.