2022 budget: Tax alignments expected – Prof. Gatsi

The Dean of the Business School at the University of Cape Coast, Professor John Gatsi, has said he expects to see tax alignments in the yet-to-be read budget statement for the 2022 fiscal year.

The Finance Minister, Ken Ofori-Atta is expected to read the budget in parliament on Wednesday, November 17.

Speaking in an interview with TV3 on Tuesday, November 16 ahead of the presentation, Prof Gatsi said “Definitely, if you are talking about a huge deficit you want to ensure that you achieve fiscal consolidation.

“Tax alignment is the solution but as to whether the alignment will respond to the reality of the grounds is another thing. So definitely there will be tax alignment in the budget."

“The net effect of those alignment will be increase in taxes because you will want to achieve fiscal consolidation so that is expected.”

The Finance Minister Mr Ofori Atta had earlier assured new graduates from the University of Professional Studies, Accra (UPSA) and all Ghanaians youths across the country that the budget statement of the government will prioritize programmes that will support the youth become their own bosses.

He said the government is determined to create an enabling environment for the youth to create their enterprises.

This, according to him, will reduce the over-reliance on the government for jobs and also lessen the burden on the payroll.

He revealed that 60 per cent of Ghana’s revenue is spent on salaries and remuneration for workers on the government’s payroll.

He described this situation as unsustainable.

Speaking at the graduation ceremony at UPSA on Friday, October 15, he said “So, the future for you with regards to jobs is the most important thing at this stage. We have gone through a period where most people look for jobs from government etc. That payroll is full because we are spending some 60 per cent of our revenue on remunerating some 650,000 people and that is not sustainable.

“The question then really is has UPSA trained you to be entrepreneurs, and your question will be where the financing is coming from. But you do, in you, have the skills set to be able to do what you have to do."

“Our responsibility as government is to create the environment and the macro stability, currency stability and ensure that you have access to the relevant skills and financing."

“This budget that we are going to be doing is going to really focus on the youth and we will have a programme here, looking at the youth and demands and how we can structure, in the next two or three years, the Ghana Obaatanpa Programme to ensure that you become your own bosses and you become entrepreneurs."

"So there is a new world out there, it is not a factory that employs ten people, but individuals like you employ two or three of four five people to create that energy for our country to transform.”