E-Levy may create room for more borrowing – Economist
Dr Michael Ayamga-Adongo, an Economist and Head of Applied Economics Department of the University for Development Studies says the Electronic Transfer Levy (E-Levy) may eventually create room for the government to keep borrowing.
He explained that relentless efforts to make E-Levy work in the country was an attempt to assure investors that government had the political mandate to implement sweeping revenue measures.
He said, “this may halt investors leaving largely as we see now and possibly create room for more borrowing.”
Dr Ayamga-Adongo, who said this in an interview with the Ghana News Agency in Tamale, noted that the E-Levy would rekindle investor trust in government to keep lending to it.
Last week, Parliament passed the E-Levy bill into Act, which was subsequently assented by the President.
Following this, the Minister for Finance announced that the collection of the E-Levy would begin in May.
Dr Ayamga-Adongo said the introduction of the E-Levy in the quest to stabilise the economy could make the country more indebted in future.
He said, “the fact is that Ghana’s sovereign spread is in thousands and our economy is designated as a debt distressed one.”