Addressing the media on Wednesday, 19 January 2022, Mr Ofori-Atta said: “To ensure that the government matches all expenditure to revenue inflows, all expenditure commitments in 2022 will be adjusted to match revenue collection”.

“Therefore, in accordance with Section 25 of the Public Financial Management Act (PFMA) law, the quarterly expenditure ceilings of the approved budget will include up to a 20% downward adjustment, beginning in the first quarter of 2022, in commitments across the, board for all covered entities benefiting from the 2022 budget, subject to revenue performance,” Mr Ofori-Atta noted.

At the same press conference, Mr Ofori-Atta said the government’s proposed e-levy will give every Ghanaian the opportunity to support the growth of the country’s economy.

According to him, since the focus is shifting from traditional banking to e-banking, there is an increased chance of the country losing some of its means of revenue generation, adding that the e-levy will make up for such tax measures.

“The e-levy will not only ensure that we move toward a more sustainable debt level but will also ensure that we have the revenues to sustainably invest in entrepreneurship, youth employment, cybersecurity, digital and road infrastructure,” Mr Ofori-Atta noted.

He continued: “The e-levy also provides a means for all Ghanaians to help support their country and grow this economy as compliant citizens giving to Caesar what belongs to Caesar”.

“Undeniably, digitalisation is eroding the traditional resilience of bricks-and-mortar enterprises.”

The finance minister added: “With fewer transactions happening across the counter, there is an increased risk that some of the standard revenue generation and tax measures will gradually become obsolete.”

The 1.75 per cent e-levy, if approved, will affect some electronic transactions.

Credit: classfmonline