Monday, 27 July 2020

Gov’t to launch GHC100bn COVID-19 revitalisation programme

 2020 Mid-year Budget Review:Govt unveils GH¢100bn COVID-19 rescue ...

 

Adnan Adams Mohammed

 

The government is preparing to roll out a three-and-a-half-year recovery and revitalisation programme to ensure the country do not only survive the havoc caused by the COVID-19 pandemic but also recover and thrive.

 

The Coronavirus Alleviation & Revitalisation of Enterprises Support (CARES) programme is expected to allow the government ‘recreate our economy and set it on a course that we yearn for’. “It will involve an investment of GHH¢100 billion from 2021 to 2023, of which GH¢70 billion will come from the private sector”, the finance minister has said during the mid-year budget review.

 

The government is touting the CARES programme as ‘ground-breaking’ as it requires radical reforms in government, particularly in revenue generation and a radical improvement in doing business for the private sector. It also adopts a whole-of-government implementation approach and fosters closer collaboration with the private sector to give a sustainable future to Ghanaians, as captured earlier”.

 

“Mr. Speaker, as you can see, every aspect of the lives of Ghanaians would be dramatically impacted with the implementation of this program; ranging from what we eat, to where we live, to where we work”, The Finance Minister disclosed to parliament last week. 

 

Mr Ofori-Atta noted that, government will vigorously promote the consumption of locally produced goods and services in order to support local businesses and generate employment. To this end, MDAs and MMDAs will be required to prioritise the procurement of local goods and services and our Public Procurement Authority and Central Tender Review Committee shall be so instructed. The aim is to generate local demand and consumption with the full force of government’s procurement capacity to ensure that most of government procurement will be sourced locally.

 

“We are in extraordinary times which call for extraordinary leadership. Accordingly, on behalf of the President of the Republic, I have presented to you an extraordinary Mid-Year Fiscal Policy Review that seeks to reorganise our public finances to protect lives, secure incomes, revitalise businesses and focus our energies on driving the economy back on track to building a Ghana Beyond Aid. It involves a recognition that the 43 solutions to Ghana’s problems lie with Ghanaians and that, with inspiring leadership, Ghanaians can find a way to address their own challenges”, the minister emphasized.

 

Mr Ofori-Atta presented the revitalization plan for the next three-and-a-half years as follow:

 

(i) An unprecedented GH¢100 billion Ghana Cares Obaatanpa Programme to transform and modernise our society

 

(ii) For the next 6 months:

a. Reduce CST from 9% to 5%;

b. Establish a GH¢2 billion Guarantee Facility to support all sectors of business and job retention;

c. Establish an Unemployment Insurance Scheme;

d. Create a GH¢100 Fund for Labour and Faith-based organisations for retraining and skills development; e. Increase the CapBuss Programme by GH¢150 million to, among others, facilitate credit of GH¢50 million to support the Creative Arts, the Media and the Conference of Independent Universities;

f. Retain provision of free water for the next three months; and

g. Retain free electricity for all life-line customers for the rest of the year.


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