|Finance Minister Ken Ofori-Atta|
Mr Ofori-Atta told Ghanaians in Germany on Sunday that having inherited an economy with a budget deficit of 9 per cent, a primary balance which was negative and meant Ghana had to borrow to pay her debts, GH¢10 billion in interest payments each year, high rates of inflation and GH¢7 billion of “hidden” arrears, amongst others, the Akufo-Addo government had put in place measures to fix and restore confidence into the country’s economy.
He noted that between the cost of labour, interest payments and statutory fees, these amounted to 107% of Ghana’s revenue, “so obviously we were not going to do much”.
This, he indicated, led to the appointment of a new Commissioner of the Ghana Revenue Authority to bring dynamism in the collection of revenue, examining of government expenditure, and the capping of statutory funds to 25 per cent of government revenue.
“That immediately freed up fiscal space for our programmes as well as providing the stimulus package for the struggling businesses. We abolished a lot of taxes for people from Abossey Okai to the Stock Exchange, so people can feel energised and get into self-employment,” he added.