Tema-Ghana, Oct. 16, – The Ghana Federation of Labour (GFL) reiterates the need for the government to adopt practical measures to support the economy and anticipates that a significant portion of the 2024 Budget would be committed to creating jobs in the public and private sectors.
The statement advocated for the adoption of sensible economic policies aimed at generating income, fostering employment opportunities, and advancing the private sector. Additionally, it urged the government to lower living expenses and eliminate regulations that impede the expansion of small, medium, and large enterprises.
According to a document submitted to the Minister of Finance titled “GFL inputs towards the preparation of the 2024 Budget Statement and Economic Policy of the Government,” any nation’s ability to maintain national security is still threatened by unemployment, and Ghana has experienced an increase in unemployment over the years, especially among young people.
The document, which was jointly signed by GFL President and Secretary General Mr. Caleb Nartey and Mr. Abraham Koomson, stated that the region’s textile manufacturing sector once employed more than 25,000 people.
Less than 2,000 people are employed in the industry, according to the GFL research, which also highlighted the difficulties caused by unfair competition from imported, pirated, and smuggled printed cloth.
The Federation stated that, regrettably, the VAT exemption is ending by December 2023. The Finance Ministry had given the sector zero VAT in order to assist in reviving the regional manufacturing enterprises.
“The industry’s recovery is sluggish and hasn’t yet surmounted the crippling obstacles to increasing job opportunities.
According to the GFL, a seven-year continuation of the zero VAT regime is essential to prevent the failing industry from collapsing. Currently, the sector employs about 3,000 Ghanaians.
The Minerals and Mining Act, 2006, specifically Section 25, which increases royalties from 6% to roughly 15%, is another item that the GFL suggests be reviewed.
In order to guarantee a rise in government revenue, GFL claims that the review must also apply to the current tax regimes on mining concessions.
“The GFL honestly believes that doing a thorough fiscal analysis of the natural resource sector will provide more clarity on the opportunities that the government can take advantage of to raise the necessary funds to prosecute government operations.
The Free SHS, Planting for Food and Jobs, One-District, One-Factory, Infrastructure for Poverty Eradication Programme, Ghana School Feeding Programme, Railways Development, Agenda 111, and Coastal Fish Landing Sites are just a few of the government’s signature initiatives that need to be reviewed with commitment.
Is the Federation’s stance that a thorough evaluation be carried out to ascertain the feasibility of these projects in light of the amount of money involved and the ensuing immediate benefit to the state?
“In addition, the results of this thorough evaluation ought to provide recommendations for safeguarding the weaker members of society, generating employment opportunities, and fostering a stable economic and financial future.”
In compliance with Section 21(1) of the Public Financial Act 2016 (Act 921), and as part of the budget preparation process for the 2024 presentation, the Ministry of Finance invited labour unions and identified groups to provide feedback for the 2024 Budget and Economic Policy.
