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APPROVAL OF $300M LOAN BY PARLIAMENT TO FINANCE 2024 BUDGET

The government has been urged to streamline the tax exemption regime of the country instead of seeking loans that jeopardize the future of the country.

APPROVAL OF $300M LOAN BY PARLIAMENT TO FINANCE 2024 BUDGET
                                                          APPROVAL OF $300M LOAN BY PARLIAMENT TO FINANCE 2024 BUDGET

Parliament approved a $300 million loan from the IDA to fund the 2024 budget in spite of strong opposition from the minority.

On March 8, following a contentious debate on the House floor, consent was given.

Dr. Mohammed Amin Adam, the Finance Minister, assuaged the concerns of the Minority Members of Parliament when the Speaker gave him the chance to do so by stating, “Let me take this opportunity to clarify a few issues.” First of all, this is a World Bank facility, not an IMF one. It is a 25-year concessional loan with a five-year grace period and an interest rate of roughly 1.25 percent. There is a 26% grant component to it.

 

APPROVAL OF $300M LOAN BY PARLIAMENT TO FINANCE 2024 BUDGET
                                             APPROVAL OF $300M LOAN BY PARLIAMENT TO FINANCE 2024 BUDGET

It is a concession, and this house is accustomed to these kinds of establishments. The second is budgetary support. The 61 billion dollar budget for the 2024 budget was approved by this same house. One of the options we are looking at to finance the 2024 budget is this loan. As is already known, funds for various projects and initiatives were allotted in the 2024 budget.

READ ALSO  Ghana will receive $300 million from the World Bank to support resilient economic growth and strengthen macroeconomic stability

“I want to reassure the minority that these exemptions will be reviewed by me. In two weeks, I will report back to Parliament after rationalizing them. Honorable members should help me in any rationalization we take on when I return, I hope,” he said in closing.

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