The NDC’s decisive parliamentary majority allows for swift policy implementation, including tax reforms, but raises questions about fiscal balance and revenue generation strategies.
The National Democratic Congress (NDC) has emerged victorious in the parliamentary elections, securing over 180 seats in Parliament, a decisive majority over the New Patriotic Party (NPP). This historic win is set to redefine Ghana’s political landscape, giving the NDC-led government significant leverage to advance its policy agenda and push forward much-needed reforms.
As a commanding majority in Parliament, the NDC has an opportunity to overcome legislative gridlocks that often hinder the passage of key bills and reforms. This shift is expected to expedite the implementation of government policies, particularly those focused on economic recovery, job creation, and social welfare.
The government can now confidently push its agenda, aligning legislative action with its manifesto promises. Areas such as healthcare, education, infrastructure, and industrialization are likely to see enhanced focus, as the majority provides a conducive environment for debate and approval of development-oriented policies.
Some key highlights of the NDC’s campaign included its promise to scrap a number of unpopular taxes, including the Covid-19 levy, betting tax, emissions levy, and the electronic levy (e-levy). These taxes have been a source of public discontent, with many Ghanaians calling for their removal, citing economic hardships.
According to North Tongu Parliamentary elect Samuel Okudzeto Ablakwa, their new found Majority will see to the removal of these taxes. “I can say confidently that with the majority that we have in parliament, Covid-19 levy will go, betting tax will go, emissions levy will go, e-levy will go”. He said.
The removal of these taxes is anticipated to bring relief to citizens and businesses, potentially boosting consumer spending and economic activity. However, it also raises questions about revenue generation. The government will need to outline alternative strategies to fill the fiscal gap that the removal of these taxes would create. This may include enhancing tax compliance, broadening the tax base, or exploring innovative revenue streams.
The NDC’s ability to pass reforms without significant opposition could bolster investor confidence, especially if the government focuses on creating a stable and predictable business environment. The repeal of taxes like the e-levy, which has been criticized for stifling digital transactions, could also attract more investment in the fintech and e-commerce sectors.
However, the government must tread cautiously to balance fiscal sustainability with its pro-business reforms. Engaging stakeholders, including businesses and civil society, will be crucial to ensuring that policy changes are inclusive and effective.
The parliamentary majority positions the NDC to implement long-term reforms aimed at driving economic growth and reducing inequality. Key priorities could include improving public sector efficiency, supporting small and medium-sized enterprises (SMEs), and addressing youth unemployment.
Moreover, the government’s ability to respond to pressing issues like inflation, currency stability, and energy supply will be critical in defining its economic legacy.
While the NDC’s majority presents significant opportunities, it also comes with high expectations from the electorate. The government must demonstrate that it can translate its promises into tangible outcomes. Failure to address pressing economic challenges could lead to public dissatisfaction, potentially eroding the goodwill it currently enjoys.
The NDC’s parliamentary majority most definitely marks a turning point for Ghana’s governance. With a clear mandate, the yet to be sworn in Mahama’s government is well positioned to implement its vision for economic transformation.
