How mid-year budget review benefits employers and workers

By Samuel Lartey(Prof) [email protected]

The 2024 Mid-Year Budget Review, presented by Dr. Mohammed Amin Adam, MP, Minister for Finance, is a comprehensive strategy aimed at fostering economic stability, growth, and social protection in Ghana. Among the numerous beneficiaries of this review are employers and workers across various sectors. This feature article explores the significant impacts of the budget review on Ghanaian employers and workers, highlighting how the outlined measures can be leveraged for business growth, operational efficiency, job creation, and improved working conditions.

Impact on Employers

1. Financial Stability and Support

1.1. Access to Funding

The government has introduced several initiatives to provide financial support to businesses, particularly small and medium-sized enterprises (SMEs).

1.1.1 SME Growth and Opportunity Programme (SME GO)**: This programme has mobilized about GH¢8.2 billion through various financial institutions to support SMEs. Employers can access these funds to expand their operations, invest in new technologies, and improve productivity.

1.1.2 Tax Incentives: The budget review outlines tax incentives aimed at reducing the financial burden on businesses. Employers can benefit from these incentives to lower their operational costs and increase profitability.

1.2. Debt Restructuring and Economic Stability

The successful completion of the Debt Restructuring Programme has significant implications for the business environment.

1.2.1 Reduced Risk Exposure: With improved fiscal stability and reduced debt servicing pressures, employers can operate in a more stable economic environment, which fosters business confidence and investment.

2. Enhancing Operational Efficiency

2.1. Digital Transformation and Innovation

The government’s emphasis on digital transformation presents numerous opportunities for employers to enhance operational efficiency.

2.1.1 Integration with Digital Platforms: Employers can leverage platforms like the Ghana.Gov Payment Platform to streamline payment processes, reduce administrative burdens, and improve financial management.

2.2.2 E-Government Services: Improved access to e-government services can simplify regulatory compliance and administrative processes, allowing employers to focus more on their core business activities.

2.2. Infrastructure Development

Investments in infrastructure, such as roads, transport networks, and digital infrastructure, are crucial for business operations.

2.2.1 Improved Logistics: Enhanced transportation infrastructure reduces logistics costs and improves supply chain efficiency, benefiting businesses that rely on the movement of goods and services.

2.2.2 Reliable Connectivity: Investments in digital infrastructure ensure reliable internet connectivity, which is essential for modern business operations and communication.

Impact on Workers

3. Job Creation and Employment Opportunities

3.1. Youth Employment Agency (YEA) Initiatives

The YEA has engaged about 90,000 beneficiaries in various programs, creating numerous employment opportunities.

3.1.1 Increased Job Opportunities: Workers, particularly the youth, benefit from job placements in community policing, health services, and garment and apparel production, enhancing their employability and providing valuable work experience.

3.2. Support for SMEs

The SME Growth and Opportunity Programme (SME GO) stimulates economic activity and job creation.

3.3 New Jobs: As SMEs expand and grow with the financial support provided, they create new jobs, providing more employment opportunities for workers across various sectors.

For Employers

1. Access Financial Support

Employers should actively seek out funding opportunities available through the SME GO programme and other government-backed financial institutions. Utilizing these funds can drive business expansion and innovation.

2. Invest in Digital Transformation

Employers should invest in digital tools and platforms to enhance operational efficiency. Leveraging e-government services and integrating with digital payment platforms can streamline processes and reduce costs.

3. Improve Workforce Skills

Employers can collaborate with TVET institutions and other training providers to enhance the skills of their workforce. Providing continuous training and development opportunities ensures that employees remain competitive and productive.

4. Utilize Tax Incentives

Taking full advantage of the tax incentives outlined in the budget review can help reduce operational costs and improve profitability. Employers should stay informed about available tax breaks and ensure compliance to maximize benefits.

For Workers

1. Participate in Skills Development Programs

Workers should engage in TVET and other skills development programs to improve their employability and career prospects. Gaining new skills and certifications can open up better job opportunities.

 

2. Take Advantage of Social Protection Programs

Utilizing social protection programs such as LEAP and NHIS can provide financial and healthcare support, reducing stress and allowing workers to focus on their professional growth.

3. Seek Employment Opportunities in Growing Sectors

With the support for SMEs and other growth initiatives, workers should explore job opportunities in expanding sectors. Keeping an eye on industry trends and actively seeking employment in high-growth areas can enhance career stability.

4. Stay Informed and Involved

Staying informed about government initiatives and actively participating in community development projects can empower workers to take advantage of available opportunities and contribute to national growth.

Conclusion

The 2024 Mid-Year Budget Review offers a comprehensive framework for supporting Ghanaian employers and workers. By focusing on financial stability, digital transformation, infrastructure development, job creation, and social protection, the budget review aims to foster a more inclusive and prosperous economy.

Employers and workers can leverage these initiatives to enhance business operations, improve working conditions, and drive personal and professional growth. As Ghana continues its journey toward economic recovery and development, the proactive engagement of employers and workers will be crucial in achieving these goals and ensuring a brighter future for all.

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