Parliament Approves 2021 Budget After Voting
After the voting, 137 MPs were in favour of approving the budget as against 134 MPs voting against the budget.
The Minority earlier rejected the outcome of the voice vote after calling for the rejection of the budget due to its tax component.
The Speaker granted the application of the Minority for a headcount amid controversy on the Floor.
Some of the proposed taxes in the budget were widely criticised by observers and various stakeholders.
There were concerns about the price of fuel, among others, after the proposed a 5.7 percent increment in prices of petrol and diesel as part of new levies.
There was also a 1 percent COVID-19 levy which will be a one percentage point increase on both the existing VAT Flat Rate Scheme (VFRS) and National Health Insurance Levy (NHIL).
The Finance Minister-nominee, Ken Ofori Atta, said this would be necessary for funding the coronavirus vaccine rollout as well has health infrastructure.
The increment will be as a result of the new 10-pesewa Sanitation and Pollution Levy as well as a 20-pesewa levy to cater for charges on the country’s excess power capacity.
The Fitch Ratings in its assessment also said the slow pace of the consolidation path outlined by the budget statement and by the accompanying medium-term fiscal framework leaves Ghana exposed to a heavy debt-service burden and risks of fiscal slippage.
The government, on the other hand, has described the taxes as necessary after a revenue shortfall of GHS13.4 billion which was 3.5 percent of GDP.
Expenditure on the other hand had seen an increase of GHS11.8 billion translating into a deficit increase of GHS25.3 billion.