Parliament has voted by majority to approve a $300 million loan agreement between the government of Ghana and the International Development Association (IDA).
The purpose of this facility, as stated by the government, is to support the financing of the 2024 budget.
However, the minority, led by Dr. Cassiel Ato Forson, opposed the loan, expressing concerns that it would further strain the country’s already delicate debt situation.
Instead of supporting the loan, the former Deputy Finance Minister urged the government to retract the over 7 billion cedis in tax exemptions granted to companies under the 1D1F program.
Deputy Finance Minister Mrs. Abena Osei-Asare countered the minority’s claims, arguing that the tax exemptions are essential for stimulating industrial growth.
Eric Opoku, the ranking member for the Food and Agriculture Committee, questioned the efficacy of the loan given the significant borrowing by the Nana Addo administration in the past, with little tangible results.
Minister for Trade and Industry K. T. Hammond questioned why the minority was attempting to link the loan facility with tax exemptions.
In a surprising turn of events, Ranking Member for the Finance Committee Isaac Adongo refuted his colleagues’ claims about tax exemptions, suggesting that the rejection of the $300 million facility from the World Bank was due to the government’s failure to present a $3 billion IMF bailout agreement to parliament for ratification.
Despite the debates, Finance Minister Dr. Mohammed Amin Adams assured the minority that their concerns would be addressed. Ultimately, the loan was approved through a voice vote, with the majority prevailing.