2021 budget not bold enough – Joe Jackson

A financial analyst with Dalex Finance, Mr Joe Jackson, has said the 2021 budget statement presented by the Majority Leader of Parliament, Osei Kyei-Mensah-Bonsu was not bold enough.

He said given the situation the local economy is faced with following the impact of the coronavirus pandemic, the government should have been bold enough to borrow more to deal with the ravages of the pandemic.

Prior to the budget reading, Mr Jackson had asked the government to borrow more to deal with the effect of the pandemic.

However, the government rather introduced some taxes to enable it generate revenue to that effect.

The government is proposing in the 2021 budget statement the introduction of a Covid-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate to support expenditures related to Covid-19.

“To provide the requisite resources to address these challenges and fund these activities, government is proposing the introduction of a Covid-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate to support expenditures related to Covid-19,” the budget said.

Speaking on the Key Points on TV3 Saturday, March 13, Mr Jackson said “Nothing has changed. We are as broke as we were before Covid.”

He added “It is not bold enough. it is the easy way out because it only introduced taxes.”

He said the budget does not show enough support for businesses in the country.