Dr. Stephen Amoah, Deputy Finance Minister, states that while improvements in the economy will eventually lead to better living conditions for Ghanaians, patience is required. He acknowledges that it is understandable for people to be frustrated by the slow impact of macroeconomic growth on their incomes and daily lives.
Dr. Amoah attributes this delay to the largely informal and SME-driven economy, which tends to respond gradually to improvements in macroeconomic indicators like inflation.
During a technical briefing organized by the Ministry of Finance on Wednesday, July 24, following the mid-year budget review presentation to Parliament, Dr. Stephen Amoah addressed concerns about economic improvements. He acknowledged that while the government often presents economic figures, Ghanaians frequently feel that inflation does not immediately impact their finances.
Dr. Amoah explained that this lag in experiencing economic benefits is due to the economy being predominantly driven by SMEs, which means that even if the economy grows by 10 percent, the positive effects take time to be felt.
The Deputy Minister explained that the delayed response of the Ghanaian market to economic growth is due to the gradual nature of development, stating, “development is a process, but we assure you that we will get there in time.” He reaffirmed the government’s commitment to maintaining recent economic improvements through the ongoing $3 billion IMF loan-supported program.
Additionally, he announced that the government will offer financial and technical support to selected businesses through the GHS8.2 billion SME Growth and Opportunity initiative, aiming to ensure continued economic growth and job creation for Ghanaians.
The SME GO initiative focuses on providing substantial funding to a select group of impact-driven SMEs to help them expand and create more jobs, thereby adding sustainability to the job market, according to Dr. Amoah.
He also advocated for a non-partisan approach to tax policy to ensure adequate funding for development projects that benefit the public. Dr. Amoah expressed concern that the two major political parties, the New Patriotic Party (NPP) and the National Democratic Congress (NDC), have historically used tax issues to discourage payment.
He pointed out that the perception of tax as negative often shifts depending on which party is in power, urging a more unified approach to building the country. Despite having around 7.4 million registered taxpayers, only 1.9 million are actively paying taxes, while about 5.4 million are inactive and the remaining one million are dormant.
The Deputy Finance Minister urged Ghanaians to fulfill their tax obligations to help the government achieve its targets and drive national development. For the first half of 2024, Ghana’s total revenue and grants reached GHS74.7 billion, falling short of the GHS76.1 billion target by 1.9 percent. This shortfall was attributed to a 72.3 percent decrease in grants and a 33.7 percent drop in oil and gas revenues.