Former Minister for Finance Seth Terkper does not believe the E-levy is the panacea to the current challenges being encountered by government.
The E-levy has been sold as the solution to virtually every challenge confronting the government.
The Minister for Roads and Highways Kwasi Amoako Atta is the latest appointee of the government to claim that the E-levy was the key to solving the liquidity problems confronting their sector.
Kwasi Amoako Atta in defense of the E-levy said the measure would generate enough revenue for the government to pay all monies owed to road contractors.
Former Finance Minister Seth Terkper however believes the expectations from the E-levy are unrealistic.
He said told Sena Nombo on the Gold Power Drive, the E-levy would not bring ‘new money’ into the economy to be used in the manner being claimed by minister and appointees of the government.
According to Seth Terkper the close to ¢7billion to be generated from the E-levy is part of the budget’s ¢100billion projected revenue that would not be adequate enough to cover three budget items.
The total projected revenue of government would not be enough to effectively cover expenditure on debt servicing, remuneration of public service workers and statutory payments.
Government projects it would need an extra ¢37billion to finance other budget items with the international bond market all but closed to Ghana following downgrades from ratings companies.
Seth Terkper said the ¢37billion deficit projected by government does not paint an accurate picture as it hides some ¢5billion expenditure below the budget line.
Seth Terkper said government needs to consider a local consolidation program with extensive expenditure cuts if the Nana Akufo-Addo regime has decided not to go for an International Monetary Fund program.
Story: Sena Nombo/Radiogoldlive.com
