Finance Minister Ken Ofori-Atta says he can’t promise that the E-levy profits won’t be used as collateral to help the government get loans.
Mr Ofori-Atta told the press on Thursday, May 12 that collateralization is not something the administration wants to look into, but that the status of the economy will dictate the government’s future decisions.
When asked whether E-levy will be collateralized, the minister said: “You know that collateralization is bad. I should give you an assurance. Where is the economy going? What are the instruments that we have in our basket and how do we deploy them?”
“Unless you are categorical and know something I do not know, that collateralization is bad, I will not give you an assurance.”
According to Mr Ofori, since the economy is volatile, the government will at each point in time examine how to judiciously use the resources at its disposal to achieve a desired outcome.
“I will at each point in time examine what we have and take a decision as to how best to use the resources of our country.”
The Minister’s comment indicates government indecisiveness on the issue as Deputy Finance Minister John Kumah and Roads and Highways Minister Amoako-Attah have given contrary indications of government’s plans for proceeds from the E-levy.
JoyNews reports that while addressing the inaugural ceremony of the Ashanti Regional Youth Parliament on March 2, John Kumah indicated that the revenue from the E-Levy will not be used as collateral for the government’s debt.
“We need revenue to construct roads. We have a huge infrastructural gap in our country. The road tolls were giving the country 78 million cedis annually.
The e-levy was going to give about 6.9 billion cedis. If Ghana was going to set aside 1.5 billion cedis from the e-levy to construct roads. It means there is an increase in capacity. Therefore, it’s untrue that the E-levy will be used as collateral,” he said.
Contrary to this, Mr Amoako-Attah on March 4, 2022, revealed that the government will securitise revenue to be generated from the E-levy to raise bonds for road construction.
“The government, in its wisdom, has proposed the passage of the E-levy to bring in more revenue to build the road infrastructure of our country for all of us.”
“Government is looking forward to the passage of the E-levy that will bring in greater revenue that will be securitised and then used to raise a bond if possible, to build the road sector infrastructure,” he disclosed.
Source: The Independent Ghana