Question

a) Most economies world-wide have been ravaged by the impact of the Covid-19 pandemic. State and briefly explain in not more than two sentences four fiscal policy interventions the government should implement to stimulate the Ghanaian economy.

Answer 1

1. TAX - Deferring the Tax filing and payment deadlines and some tax exemptions to the sectors badly affected due to the pandemic.

2. Increased Spending - Transfer payments to poor households such as cash benefits and to help business retain their employess rather than laying them off.

3. Increased Investment - By increasing its production of economic activities such as Investment, it can employ more number of people during such crisis to check unemployment rate.

4. Reducing Policy Rate - Reducing the rate of lending credit to the Private sector to boost the economic activity.