E-Levy: CDD boss exposes government over fears of an IMF bailout

Executive Director of the Ghana Centre for Democratic Development (CDD-Ghana), Prof Henry Kwasi Prempeh, has explained that the government is doing all it can to avoid a programme with the International Monetary Fund (IMF) so as to be able to spend without discipline.

Prof Prempeh’s comment comes at a time Information Minister, Kojo Oppong Nkrumah’s revelation that the government’s resolve to implement the electronic transactions levy (e-Levy) is to enable government raise enough money so that it will avoid going to the IMF for budgetary support.

Kojo Oppong Nkrumah had said that about a billion dollars will be generated from the e-Levy which will be sufficient to keep the Government from seeking support from the IMF.

But Prof Prempeh has argued that the government’s determined effort to avoid the IMF is to enable it spend in an undisciplined manner.

“The only reason the Govt of Ghana wants to avoid the IMF is to avoid spending discipline. They want to be free to spend and do as they please,” wrote in reaction to the news.

The government has proposed in its 2022 budget to implement the e-Levy so has to raise much-needed revenue for its expenditure for the year.

But the move has been criticized by many, who say it runs counter to the government’s digitalisation agenda.