Ghanaian News

John Kumah: Budget allocation to MMDAs to be slashed by 20%

The government’s allocation to Municipal, Metropolitan and District Assemblies (MMDAs) for the first quarter of this year will see some 20% reduction, the deputy finance minister John Kumah has said.

Kumah said the decision is as a result of delays in the passage of the controversial E-Levy and the reversal of the benchmark value policy.

Speaking to Kwaku Nhyira-Addo on The Asaase Breakfast Show Thursday (20 January) Kumah said government is cutting down on its expenditure to ensure fiscal consolidation.

“For instance, because the E-Levy has delayed and even the reversal of benchmark value has delayed, government has announced that first quarter release to all MMDAs will be discounted by 20%.

“So there is clear commitment, you raise and you spend. You don’t spend what you don’t have. So we are going to ensure that we stay within the strict measures of the revenue raised,” Kumah said.

Expenditure rationalisation
He added: “And so that is a clear indication that government is also looking at expenditure rationalisation and making sure that we don’t over-run the budget. Also, if you look at the growth of revenue for 2022, we are looking at about 40% growth… and if you are looking at expenditure we are looking to spend extra 25, so that tells you that we are actually slowing on expenditure to ensure fiscal consolidation.”

Kumah said passing the E-Levy is crucial to among other things reducing youth unemployment in the country.

“We believe we will pass E-Levy, we believe once E-Levy is passed we will stay within budget targets, …it is ok to have positive ratings from all the agencies, it only shows confidence,” he said.

“But with or without confidence, we as Ghanaians and managers of this economy, we are very confident of what we are doing and we believe we will put this nation on track just as we have done all these while.”

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