Former President John Dramani Mahama has accused the Akufo-Addo led government of collateralizing all sources of revenue in the country.
Addressing a gathering on the economy in Accra, Thursday June 30, Mr Mahama noted that the Energy Sector Levy Act (ESLA) has been collateralized until 2035.
This means government cannot generate money from that side till the given time is due.
For the reason, he explained why he said government cannot take off some taxes when the Trade Union Congress demanded some taxes on petroleum products are removed.
Mr Mahama believes this collateralization of the country’s resources is the reason why the economy is in bad shape, noting that future governments are equally going to bear the brunts.
“There is the collateralization of all sources of revenues and it is affecting them because these revenues are no longer available, they have taken them upfront and spent them.
“But the more important thing is the effect it will have on our future and future governments. For instance, ESLA, till 2035, it means that governments now, and 2035 are not going to have access to any extra ESLA revenues.
“GETFUnd, they have used it to float a bond and so they themselves and future governments will not have access to GETFUnd revenues.
“That is why I said the other time when the TUC asked that the President should take some of the taxes off, I said some of the taxes, they can’t take them off because they have collected the money and spent it upfront.”
GhanaFeed.com
