Economist Prof Godfred Bokpin has said the government has the flexibility to ease the burden on consumers by cutting or scrapping some petroleum levies, without negatively affecting the national budget.
Speaking in an interview on JoyFM’s Midday News, he explained that budgets are based on assumptions that may not hold for the entire year, giving government room to respond to changing economic conditions.
“When your budget is approved, it is grounded on certain assumptions. These assumptions may not hold for the entirety of the budget implementation year.
“So when there are developments, you need to have scope within which you can respond. That is what makes government more efficient and flexible,” he said.
He was answering a question on how the government could make up for lost revenue if it were to scrap some fuel levies, given that the national budget has already been planned.
The Professor of Finance and Economics at the University of Ghana said such adaptability is particularly important given the impact of global fuel price fluctuations and ongoing geopolitical tensions, including the Russia-Ukraine conflict, which continue to affect local fuel costs.
His comments come amid growing calls from the African Centre for Energy Policy (ACEP) and the Ghana Private Road Transport Union (GPRTU) for government to urgently review petroleum taxes to protect consumers.
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