President Nana Addo Dankwa Akufo-Addo has disclosed that the government has approved 80 companies to benefit from its stimulus package.
The Nana Addo-led government among its numerous interventions to make local businesses more competitive is providing the financial support to some distressed businesses in the private sector.
Explainer: Stimulus package is a package of tax rebates and incentives by governments to stimulate the economy and save their country from a financial crisis.
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The idea behind a stimulus package is to provide tax rebates and boost spending, as spending will increase demand, which will also increase employment rate which in turn increases income and hence boosts spending. This cycle continues until the economy recovers from collapse.
Addressing journalists at his maiden media encounter President Akufo-Addo confirmed that 80 companies will soon receive the stimulus package.
“The asempa budget also provided the fifty million dollar stimulus package for the revival of distressed industries and companies. At the end of June 2017, 285 applications had been received. So far one hundred and eighteen have been screened in which eighty have been adjourned eligible for various stimulus packages.”
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“In addition to government’s contribution an amount of twenty million dollars is being ear marked by local financial institutions as part of the stimulus package this will definitely help in the revival of our industrial sector under the minister for trade and industry Alan Kyeremanteng,” he added.
Most private sector businesses have earlier demanded that the government made the package available by end of June 2017.
The President of the AGI, James Asare Adjei had also indicated earlier that the package when provided will help many businesses in the country.