[ 2021-03-13 ]

€890 million approved for construction of 33 health projects
An amount of €890 million has been set aside by
the government for the construction of 33 major
health projects in the country.

This was disclosed by the Caretaker Minister of
Finance, Osei Kyei-Mensah-Bonsu.

Presenting the government’s 2021 Budget
Statement and Economic Policy in Parliament on
Friday, Mr. Kyei-Mensah-Bonsu who doubles as the
Minister for Parliamentary Affairs and Member of
Parliament for Suame indicated that these projects
are part of the state’s grand agenda to managing
the COVID-19 pandemic.

“33 major health projects have been approved for
implementation at a cost of €890 million”, the
Minister said.

He among other things said despite the unexpected
increase in government’s expenditure due to the
outbreak, it is however committed to carrying out
these projects.

Mr. Kyei-Mensah-Bonsu announced that in pursuit of
the government’s health infrastructure drive,
including Agenda 111, the Health Ministry awarded
contracts for the construction of 101 district
hospitals, seven regional hospitals and three
Psychiatric Hospitals.

“In 2021, the implementation of these projects
will continue”, he said.

Other health infrastructure projects earmarked to
be continued for the year under review include the
Koforidua Regional Hospital, Shama District
Hospital, La General Hospital and Tema Regional
Hospital.

The rest are the reconstruction of the Central
Medical Store, District Hospital in Nkoranza and
the Accident and Emergency Center Dormaa
Hospital.

COVID-19 Health Levy
Meanwhile, the government has announced the
introduction of a COVID-19 levy to cater for the
increasing state expenditure brought on by the
coronavirus pandemic.

The newly proposed levy will be a one percentage
point increase on both the existing VAT Flat Rate
Scheme (VFRS) and National Health Insurance Levy
(NHIL).

Monies accrued from the imposition of the levy
will go into the construction of health
infrastructure, recruitment of more health
personnel, vaccination programme and address other
challenges in a bid to manage the COVID-19
outbreak in the country.

“To provide the requisite resources to address
these challenges and fund these activities, the
government is proposing the introduction of a
COVID-19 Health Levy of a one percentage point
increase in the National Health Insurance Levy and
a one percentage point increase in the VAT Flat
Rate to support expenditures related to
COVID-19,” Mr. Kyei-Mensah-Bonsu disclosed.

The Minister admitted that expenditure on health
infrastructure and health-related items such as
vaccines, hospital supplies and Personal
Protective Equipment (PPE) would become routine.

However, the government “will take measures to
ensure that these additional critical expenditures
do not undermine our fiscal consolidation and debt
sustainability.”

Source - Citinewsroom

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