Finance Minister, Ken Ofori-Atta, has asked Parliament to prioritise the approval of the government’s outstanding revenue bills to ensure a smooth budget implementation of the 2023 budget.
Addressing the House on Thursday on the government’s Domestic Debt Exchange Programme, he said prioritising the approval of the outstanding revenue bills would be necessary for “effective budget implementation as well as boosting our efforts at increasing our tax to GDP from less than 13percent to the sub-Saharan average of 18percent.”
“Mr Speaker, as the international and domestic bond markets are shut for the financing of the government’s programme we are relying on treasure bills and concessionary loans as the primary source of financing for the 2023 budget.
“We, therefore, call on this House to support the government’s financing request to ensure a smooth recovery from these economic challenges,” he stated.
Meanwhile, The Finance Minister confirmed that all pensioners who did not participate in the bond offering are exempted.
He also reassured pensioner bondholders that the government will honour their coupons, payments and maturing principals “like all government bonds in line with government fiscal commitment”.
He gave the assurance when he addressed Parliament on the government’s Domestic Debt Exchange Programme on Thursday, February 16, 2023.
“Government remains committed to the wellbeing of our senior citizens. Indeed, it has personally caused me great distress as a number of our pensioners have picketed at the premises of the ministry of finance since Monday, February 6, 2023. I have already indicated in my press release, Mr Speaker dated 14th February 2023 that government will honour their coupons, payments and maturing principals like all government bonds in line with government fiscal commitment,” he stated.
Mr Ofori-Atta also informed the lawmaking chamber that the government in partnership with developing partners has started the process to establish the financial stability fund to provide liquidity and solvency support to Banks, pension funds, insurance companies, fund managers and collective investment schemes to ensure that they are able to meet their obligations to their clients.
The government on Tuesday, January 14, 2023, closed the Domestic Debt Exchange Programme with over 80 per cent participation of eligible bondholders.
The voluntary programme seeks to tackle the current economic crisis, bring back macroeconomic stability and guarantee sustainable growth.
This comes after five deadline extensions as various groups sought exemptions or improved terms to participate.
