Govt's expenditure on COVID-19 is GHS19 billion - Oppong Nkrumah clarifies

He said that figure is just expenditure for two items listed under the COVID-19 spending presented by the government in its 2021 budget statement.

Oppong Nkrumah, who is also the MP for Ofoase Ayirebi said the total expenditure since COVID-19 struck in Ghana amounts to GHS19 billion.

Speaking at a press conference in Accra, he explained that: “The GHS1.7 billion reflects expenditure on only 2 items under the COVID-19 related expenditure, paragraph 3 says, as at the end of December 2020 Ghana incurred revenue shortfall of GHS11 billion and expenditure increase of GHS14 billion."

"So if you are looking for the true fiscal impact, it is a combination of these two that will give you the true fiscal impact. The amount of GHS16.8 billion paragraphs 4 referred to under page 12 (b) is only providing information on the sources of financing and the fiscal gap resulting from the COVID-19 pandemic, so we encourage you to pay some attention to this one.”

He also dismissed the claims that Ghanaians are being taxed for the free water and electricity initiatives implemented by government to fight the pandemic last year.

“Government has never said that we have to pay for the free water and free electricity of 2020. The COVID-19 levy is not for free water and electricity. For the avoidance of doubt, the Ministry of Finance statement deals with it. But if you also go into the budget, if you go to I think page 58 in their statement, they said page 75 but its actually page 58 of the full document. It outlines the full uses of the COVID-19 levy. If I just may have the opportunity to share with you, it’s on page 58."

"It never says anywhere that we have to pay for the free water and electricity of 2020, it outlines what the government has done so far in connection with the COVID-19 program, and then it goes on to make the point that to provide the requisite resources to sustain the implementation of these measures, the government is proposing the introduction of a COVID-19 health levy of 1% increase in the National Health insurance levy and 1% point increase in the VAT flat rate and for that purpose. We urge you to highlight the correct position as it has been put out by the Ministry of Finance.”

The NDC Member of Parliament for Yapei Kusawgu, John Jinapor, had accused the government of only utilizing GHS1.7 billion of the allocated GHS19 billion for issues of COVID-19 in 2020.

It was also suggested that the rest of the money was used for expenditures unrelated to COVID-19.