The Ghana National Chamber of Commerce and Industry (GNCCI) has implored government to avoid competing with the private sector for limited funds.
The Chamber’s president, Dr. Clement Osei-Amoako – while urging government to curb its budget deficit by living within its resources, called for structural reforms that can boost the private sector, turn the economy around and ultimately lift millions out of poverty.
“Government must address the budget deficit to avoid competing with the private sector for funds. Given the current economic conditions and already tight monetary policy, further attempts to compete with the private sector for funds in the domestic money market will bring significant distortions in the economy.
“Government will have to implement policies that support investments and private sector growth in the areas of manufacturing, agriculture and food production to fuel a structural transformation process for growth,” he said in his welcome address at the Chamber’s 47th annual general meeting held in Accra.
Doing this, he explained, will help in arresting inflation and the rising cost of living.
Expectation for 2024 Budget
Commenting on the upcoming 2024 Budget statement, which is expected to be presented this month by the Minister of Finance, Dr. Osei-Amoako, he said he expects government to use the impending budget to initiate policies which stimulate private sector growth.
To bring some relief for businesses, the Chamber wants government to review downward some existing taxes and remove the COVID-19 levy – which it says has outlived its relevance. It also urged government to review port levies and duties to make the country’s ports less expensive for business.
“Given the introduction of new and increased excise duty, growth and sustainability levy and new income tax rate and income tax bracket under the new tax amendment bills passed this year, the Chamber wants government to review downward the already existing taxes: including reverting the current VAT regime to its original (2016) state and removing the COVID-19 levy, which has outlived its relevance, to bring some relief for businesses.”
In addition, the Chamber’s president urged government to improve efficiency with regard to public investment, and cut wasteful spending.
“In particular, there is a need to use improved fiscal space to scale up growth-enhancing spending, efficiently manage the wage bill, and review the size of government as cost-saving measures. This is to curb the already high debt stock in the country.”
Dr. Osei -Amoako also encouraged government to deepen its efforts at widening the tax net while employing prudent means of addressing tax non-compliance.
The 47th AGM was held under the theme ‘Building business confidence in the midst of economic challenges’.
