Ken Ofori-Atta
Parliament has finally passed the Appropriation Bill (2021), which provides for the withdrawal of GH¢145.4 billion to meet government expenditure for the 2022 fiscal year from the Consolidated Fund and other public funds and related matters, after weeks of wrangling between the Majority NPP and Minority NDC Caucuses.
The long-awaited legislation, which now heads to President Akufo-Addo’s desk for assent, for instance provides over GH¢1.103 billion for services of the Ministry of Food and Agriculture, GH¢60.86 million for the services of the Commission on Human Rights and Administrative Justice (CHRAJ).
It contains several significant provisions, including capital expenditure and compensations for workers provided under various annual estimates for all the Ministries, Departments and Agencies, with GH¢170.504 million voted for the Office of the Special Prosecutor, GH¢20.362 million for the Office of Legal Aid Commission and GH¢9.026 million for the National Media Commission (NMC).
Deputy Finance Minister, Abena Osei Asare (NPP MP Atiwa East) moved the motion for the third reading of the bill, after it was taken through second reading and consideration by the House.
E-Levy Fears
No action was taken on the Electronic Transfer Levy Bill, 2021, popularly called E-Levy, which has become the point of disagreement between the Majority and Minority Caucuses, and it is expected to be taken through the various stages today (Monday) when Parliament resumes sitting at10:00am.
The introduction of the E-Levy expected to be at the rate of 1.75% when approved, appears to be the main concern of the NDC because they are claiming that when the budget is approved the E-Levy has the capacity to bring in more money to enable the NPP government to fulfil its manifesto promises and at the same time dwindle the fortunes of the NDC by 2024 when the country goes for general elections.
The E-Levy when passed is expected to come into effect on February 1, 2022, and will attract a charge of 1.75% of the value of electronic transactions, particularly Mobile Money (MoMo) transactions.
The Finance Minister, Ken Ofori-Atta, presenting the budget on November 17, said that “Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75% which shall be borne by the sender except for inward remittances, which will be borne by the recipient.”
Per the arrangement, a sender, and not the receiver, would bear the cost of the 1.75 per cent charge on e-transactions that are above GH¢100.
Despite many other goodies in the budget which experts say is forward-looking, the E-Levy component in the budget has especially triggered accusations and counter accusations, often along partisan lines.
The government said out of about 18 million potential taxpayers, only 2.4 million persons (approximately 8% of the total population) were registered as personal income tax payers as of August 2021, and therefore the E-Levy is to broaden the tax net and rake in more revenue for the country.
But the NDC which has been opposing the E-Levy has said its members in Parliament remain committed to exploring lawful and democratic means to get the government to abandon the tax it describes as “insensitive, obnoxious and regressive.”
At a point, the government said it was ready to deepen consultations on the E-Levy in order to find amicable solution to the issue.
Other Budgets
Meanwhile, the House has approved budgets of various ministries and their agencies, and they include the Ministry of Chieftaincy and Religious Affairs (GH¢83.259 million), Trade and Industry Ministry (GH¢602.064 million), Foreign Affairs and Regional Integration (GH¢574.737 million), as well as Sanitation and Water Resources Ministry (GH¢801.036 million).
Others are National Security Ministry (GH¢816.787 million), Gender, Children and Social Protection (GH¢1.143 million), Lands and Natural Resources Ministry (GH¢1.369 billion), Tourism, Arts and Culture (GH¢115.694 million), Communication and Digitalisation Ministry (GH¢506.831 million), Interior Ministry (GH¢5.168 billion), and Defence (GH¢2.244 billion).
The rest are Office of the Attorney General and Ministry of Justice (GH¢195.539 million), Right to Information Service Commission (GH¢18.005 million), Public Service Commission (GH¢24.492 million), National Commission for Civic Education (GH¢88.144 million), Audit Service (GH¢536.340 million) and Education Ministry (GH¢17.787 billion).
The GH¢118.611 million budget of the Electoral Commission, GH¢555.104 million budget of the Judiciary and Judicial Service, GH¢510.777 million budget of Parliament and Parliamentary Service as well as GH¢8.111 million of the Ministry of Parliamentary Affairs were all approved by the House.
By Ernest Kofi Adu, Parliament House