According to the COVID-19 Business Tracker survey, conducted by the Ghana Statistical Service, in collaboration with the United Nations Development Programme (UNDP) and the World Bank has shown that about seven hundred and seventy thousand (770,000) workers had their wages reduced, and about forty-two thousand (42,000) employees were laid off during the three-week partial lockdown imposed on the Greater Accra and Greater Kumasi Metropolitan Areas and their contiguous districts, Tema and Kasoa in 2020.
The COVID-19 pandemic has led to job losses, with many Ghanaian businesses and firms being forced to cut costs by reducing staff hours, cutting wages, and, in some cases, laying off workers.
This survey, again, Government, however, succeeded in protecting the jobs and incomes of all public sector workers, President Nana Akufo-Addo has said during a state of the Nation Address.
He said indeed, the cost of COVID-19 has been enormous, and the overall economic growth rate for 2020 was revised downwards from 6.8% to 0.9% as the non-oil economy was also revised from 6.7% to 1.6%.
The president said the Revenue shortfall was estimated at GH¢13.5 billion, with additional expenditures related to stemming the tide of COVID-19 estimated at GH¢11.8 billion, with the combined effect amounting to GH¢25.3 billion, or 6.6% of GDP. The resultant fiscal deficit for 2020 was, thus, revised from 4.7% of GDP to 11.4% of GDP. This was done to reflect the impact of the pandemic. The fiscal responsibility rule of keeping a deficit within a threshold of 5% of GDP and a positive primary balance for every year was suspended in 2020 to enable fiscal operations to accommodate the impact of the pandemic.
“I indicated at the time that we know what to do to bring the economy back to life, what we do not know how to do is to bring people back to life. That is why Government did not hesitate to institute measures to protect the lives and livelihoods of Ghanaians, even if it was to the temporary detriment of our much sought-after fiscal stability.”
”The formulation and implementation of the COVID-19 preparedness and response plan, tracing, testing, treatment, waiver of personal income tax and provision of an additional fifty percent (50%) basic salary allowance to healthcare workers, expanding the capacities of laboratories to increase COVID-19 testing, establishment of isolation centres in all regions and districts, fumigation of markets and schools, provision of food packages and hot meals for residents in areas affected by the partial lockdown, provision of free water for all households, provision of free electricity for lifeline consumers and a fifty percent (50%) discount for all other consumers, reduction in the Communication Service Tax (CST) from nine percent (9%) to five percent (5%), the institution of a seven hundred and fifty million cedi (GH¢750 million) loan facility for micro, small and medium enterprises through the CAPBUS Initiative, and the provision of a two billion cedi (GH¢2 billion) guarantee facility to support large businesses, such as schools and pharmaceutical companies, are amongst the several measures put in place by Government to cushion Ghanaians from the impact of the pandemic. ”
”Support has also been forthcoming from the Bank of Ghana, under its brilliant leadership, which has lowered the Monetary Policy Rate by one hundred and fifty (150) basis points to 14.5 percent, reduced the Primary Reserve Requirement from ten percent (10%) to eight percent (8%), reduced the Capital Adequacy Requirement from thirteen percent (13%) to eleven-point five percent (11.5%), and reduced interest rates based on the Ghana Reference Rate by two hundred (200) basis points. ”
The Ghana Revenue Authority has also extended the dates for filing of taxes from four (4) months to six (6) months after the end of the basis year, issued a waiver on VAT, National Health Insurance Levy and GETFund Levy on donations of equipment and goods for fighting the pandemic waived income taxes on Third-Tier Pension withdrawals and permitted the deduction of contributions and donations towards COVID-19 as an allowable expense for tax purposes.
Source: Mybrytfmonline.com