Government Finance Policies

OVERVIEW OF THE ECONOMIC STABILISATION BILLS Background: The Economic Stabilisation Bills (ESB) which have been approved by the Federal Executive Council contain some recommendations of the Presidential Fiscal Policy and Tax Reforms Committee as part of the Accelerated Stability and Advancement Plan (ASAP) of the government. The ESB seeks to amend about 15 different tax, fiscal, and establishment laws to facilitate economic stability and set the country on the path for sustained inclusive growth. Policy objectives: The proposed changes are designed to achieve the following key objectives: a) Inflation reduction and price stability  b) Complement monetary policy measures with appropriate fiscal interventions to strengthen the naira and sustain exchange rates convergence  c) Promote fiscal discipline and consolidation d) Enhance job creation and poverty alleviation e) Export promotion and diversification Proposed changes: The key changes to be made to the various laws include - 1. Amendments to the income tax laws to facilitate employment opportunities for Nigerians in Nigeria within the global value chain, including the digital economy. 2. Zero rated VAT and improved incentive regime to promote exports in goods, services, and intellectual property. 3. Amendments to facilitate investment in the gas sector and simplify the local content requirements to ensure competitiveness. 4. Reform of the foreign exchange regime to enhance the regulatory powers of the CBN, unlock more forex liquidity, strengthen the naira, and sustain rates convergence. 5. Tax reliefs for private sector employers in respect of wage awards and transport subsidies provided to their employees. 6. Tax relief to companies that generate incremental employment and retain such employees for a minimum of 3 years. 7. Fiscal discipline and enhancement of remittances from government agencies and corporations to the Consolidated Revenue Fund of the federal government. 8. Collaboration with states to suspend certain taxes on small businesses and vulnerable population such as road haulage levies and other charges on transportation of goods; business premises registration; animal trade and produce sales tax; bicycle, truck, canoe, wheelbarrow, and cart fees; shops, kiosks and market taxes and levies. 9. Introduction of “Tax Identification Consolidation and Collaboration (TICC)” initiative to expand the tax base, widen the tax net, and create a level playing field for businesses. 10. Provision of additional funding for the Students Loan Scheme. Next steps: The bills are to be transmitted to the National Assembly for passage into law.

Income Tax Officers May Access Your Emails and Social Media Accounts From April 2026. From April 1, 2026, the Income Tax Department will have expanded powers to access individuals’ digital accounts if they suspect undisclosed income or assets. This includes emails, social media, bank accounts, trading platforms, and online investments. 🔹 Rule 1: Access to Digital Accounts Officers can now access your social media accounts, email, WhatsApp, cloud storage, and online financial accounts. The reason is simple: undisclosed income and hidden assets are increasingly stored digitally. Authorities want to ensure transparency and prevent black money from being hidden online. - Example: If someone frequently posts luxury trips or expensive purchases but shows minimal declared income, it will trigger scrutiny. - What you can do: Keep all your digital financial records in order, avoid flaunting a lifestyle that does not match your declared income, and ensure full disclosure of assets. 🔹 Rule 2: Lifestyle Verification Authorities can check your grocery bills, restaurant bills, travel expenses, personal purchases, and major investments. The reason is to compare your lifestyle with your reported income. Overspending compared to declared income raises red flags. - Example: Posting Dubai trips, expensive dinners, or luxury shopping on social media while reporting a modest income will invite investigation. - What you can do: Maintain records of all significant expenses and reconcile them with your income. Transparency is the only shield. 🔹 Rule 3: Legal Override of Security Codes Passwords, PINs, and digital locks will not protect accounts if there is suspicion of tax evasion. Officers can override security to access emails, accounts, and cloud storage. - Reason: Hidden digital assets can no longer remain secret when taxes are under investigation. - What you can do: Ensure proper reporting and documentation. Avoid keeping undisclosed digital income or assets. 🔹 Rule 4: Importance of Full Disclosure The law emphasizes that any income, property, gold, jewelry, or valuable items must be reported. The reason is to strengthen compliance, curb black money, and ensure fairness in the system. - Example: Even small undeclared income from trading platforms, online sales, or gifts can lead to legal action. - What you can do: Declare all income sources honestly. Organize accounts and records to avoid future scrutiny. 🔹 Rule 5: Flex Wisely The new rules make it clear that lifestyle and social media posts are under indirect scrutiny. Flaunting wealth without proper documentation is risky. -Reason: Authorities use public digital information as indicators of possible tax evasion. -What you can do: Be mindful of what you share online. Focus on transparency and responsibility rather than image. Starting in April 2026, transparency will come into focus. How much of your digital privacy are you willing to exchange for compliance?

Cost Estimation * Cost estimation is the process of forecasting the financial resources required to complete a project within its defined scope and timeframe.    Purpose: To provide an approximate budget for the project. To determine the feasibility and economic viability of the project. To assist in project planning and decision-making. Stages: Initial Estimation: Broad estimates made during the early stages of the project based on limited information. Refined Estimation: More detailed and accurate estimates made as the project scope becomes clearer and more information is available. Techniques: Analogous Estimating: Using historical data from similar projects. Parametric Estimating: Using statistical relationships between historical data and other variables. Bottom-Up Estimating: Breaking down the project into smaller components and estimating the cost of each component. Expert Judgment: Consulting with experts who have experience with similar projects. Output: A detailed cost estimate document that outlines the expected financial requirements for the project. Cost Control *Cost control is the process of monitoring and managing project expenditures to ensure that the project stays within the approved budget. Purpose: To manage and reduce cost overruns. To ensure the project is completed within the approved financial resources. To provide data for financial reporting and project decision-making. Stages: Budget Baseline: Establishing a baseline budget based on the cost estimation. Monitoring: Continuously tracking actual costs against the budget. Controlling: Taking corrective actions to address any deviations from the budget. Techniques: Earned Value Management (EVM): Measuring project performance and progress in an objective manner. Variance Analysis: Identifying and analyzing differences between planned and actual costs. Trend Analysis: Using historical data to predict future performance. Change Control: Managing changes to the project scope that may affect costs. Output: Regular cost reports and updates. Corrective action plans to address any deviations. Final cost performance assessment at project completion. Key Differences Focus: Cost estimation focuses on predicting the financial resources needed before the project starts. Cost control focuses on managing and adjusting the project budget during execution. Timing: Cost estimation is primarily a pre-project activity. Cost control is an ongoing activity throughout the project lifecycle. Objective:  The objective of cost estimation is to create a financial plan.  The objective of cost control is to adhere to the financial plan and mitigate deviations. Both cost estimation and cost control are crucial for effective project management. Accurate cost estimation sets the foundation for a realistic budget, while diligent cost control ensures that the project stays on track financially, ultimately contributing to the project's success. #Cost_Estimation #Cost_control #Safeek #LinkedIn

In my latest Forbes column, I propose five practical reforms that could enhance the Medicare Advantage program, making it more transparent, equitable, and effective for the seniors and communities it serves: 1) Pilot Mult-Year Enrollment in Plans. No matter what anyone says about their value-based care results, value is ill-produced in healthcare in one year increments. 2) Standardize Plan Benefits. Plans are competing on nonsense and unsustainable benefits—often leading to a bait and switch for seniors. Standardizing benefits will improve plan competition and ensure every plan delivers consistent and meaningful value. 3) Reform broker incentives, rewarding year-round member support—not just sign-ups. Effectively deployed, brokers can be the missing glue we need t improve American healthcare. 4) Vary maximum broker commissions with star ratings. Star ratings should be an accelerant to sales. Fact: Today, a good number of brokers will tell you they don’t even know plan star ratings when they sell them. 5) Drive adoption of capitated payments to align provider incentives toward coordinated, value-based care. Health systems have been snookered by health plans who non-transparently push off the costs of supplemental benefits and other expenses. This explains why so many health systems complain of underpayments while MEDPAC claims Medicare Advantage overpayments. There is a better way. Collectively, these reforms aim to improve the quality of the Medicare Advantage marketplace. As we collectively work toward building a more sustainable healthcare system, these are actionable steps that lawmakers, payers, providers, and advocates can take now. I invite you to read the full article and share your thoughts: how might these recommendations reshape Medicare Advantage—and what additional levers are we missing? https://lnkd.in/gQmevX5K

In a country like Mexico, where healthcare investment is already among the lowest in the OECD, recent budget cuts to the health sector are being celebrated as “savings.” But at what cost? My latest article unpacks the devastating consequences of these austerity measures—on patient care, public trust, and the very fabric of society. This isn’t just about numbers; it’s about the lives disrupted and lost due to chronic underfunding. It’s time to challenge the absurdity of cutting budgets in a system already struggling to meet basic needs and expose the immorality of prioritizing fiscal optics over human well-being. 💡 Read the full article to explore why healthcare budgets must never be sacrificed and join the conversation about the future of public health in Mexico. Should the health of a nation be reduced to a line item on a budget? Let me know your thoughts in the comments or send me a message. #Mexico #Healthcare #PublicHealth #Policy #Ethics

Risk management decisions are often overlooked until a crisis forces action. These decisions focus on protecting financial stability and long-term growth. Some key considerations: ✅ Are there enough cash reserves to handle unexpected downturns? ✅ Is the business taking on a manageable level of debt? ✅ Are key suppliers and customers diversified to avoid over-reliance on a single entity? Ignoring risk does not eliminate it. A structured approach ensures the business remains resilient under changing conditions. What risk management decisions should be addressed now?

I’ve tested these 14 tax strategies for over a decade. They are the most reliable for keeping more money in your pocket: For Real Estate Investors: Cost Segregation Studies: These remain valuable for accelerating depreciation on high-value assets, even with declining bonus depreciation rates 1031 Exchanges: Still available for deferring capital gains when selling properties. Real Estate Professional Status (REPS): This status continues to allow investors to deduct rental losses against active income Self-directed IRAs: These remain a viable option for investing in real estate while deferring taxation. For Business Owners: S Corp Tax Election: This strategy for reducing self-employment taxes is still applicable. QBI Deduction: The 20% Qualified Business Income deduction remains available for pass-through entities Home Office Deduction: Still available for those who use part of their home exclusively for business Hiring Family Members: This strategy for income shifting continues to be valid. Retirement Plan Contributions: Maximizing contributions to Solo 401(k)s and SEP IRAs remains an effective tax-reduction strategy For High-Income Earners: Municipal Bonds: These continue to provide tax-free interest income. HSAs & FSAs: These tax-advantaged accounts for medical expenses are still available. Charitable Giving Strategies: Donating appreciated assets remains a tax-efficient giving method. Tax-Loss Harvesting: This strategy for offsetting capital gains is still applicable. Deferred Compensation Plans: These plans continue to be useful for managing tax brackets. Don’t wait until your tax bill arrives—fix it before it’s too late.

🌍 𝗧𝗵𝗲 𝗠𝗶𝘀𝘀𝗶𝗻𝗴 𝟮 𝗕𝗶𝗹𝗹𝗶𝗼𝗻: 𝗠𝗮𝗸𝗲 𝗦𝗼𝗰𝗶𝗮𝗹 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗧𝗿𝘂𝗹𝘆 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗶𝗻 𝗮𝗻 𝗔𝗴𝗲 𝗼𝗳 𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆! Despite notable progress, 2 billion people in low- & middle-income countries remain uncovered or inadequately covered by social protection systems, as highlighted in the World Bank’s State of Social Protection Report 2025. While social protection coverage has expanded to over 4.7 billion globally, it often remains: 📌 Too little (low benefit adequacy), 📌 Too late (limited crisis responsiveness), 📌 Too narrow (missing informal, migrant, & female workers). In low-income countries, social assistance contributes just 11% to poor households’ incomes - barely enough to cushion basic shocks. At current pace, it’ll take two decades to cover the bottom 20% of populations. Yet, countries like India are rewriting the script - one policy at a time. 🇮🇳 India’s approach blends universal schemes, digital infrastructure, & state-level innovations: 📍e-Shram (eshram.gov.in): national database for 280m+ unorganized workers 📍Ayushman Bharat: ₹5 lakh health insurance for 50 crore people 📍EPFO & ESIC: institutionalized security for formal workers 📍National Pension Scheme: voluntary retirement planning 📍PM-KISAN, Atal Pension Yojana, Ladli Behna Yojana, & other DBT schemes providing income support to farmers, women, elderly, & gig workers 📍Cross-subsidies like free electricity for agriculture & small households, zero-fare public transport for women, and state-sponsored healthcare/education These financial interventions are instruments of dignity, aimed at reducing exclusion, especially for women, the elderly, and informal workers. But there's another silent shift we must acknowledge: the fracturing of joint families into nuclear units. 👪 Traditionally, Indian households relied on extended family systems to shoulder care responsibilities and income shocks. Today, urbanization, migration, and shrinking households have eroded these informal safety nets. This isn’t just about affordability - it’s about the viability of social protection in a rapidly changing value system. As family support structures weaken, the state must step in as the default caregiver - with systems that not only offer financial support but also foster care, community, and continuity. The World Bank outlines four pathways forward: 1️⃣ Expand coverage - especially for the informal and invisible 2️⃣ Enhance adequacy - benefits must empower, not just alleviate 3️⃣ Build adaptive systems - to withstand crises and transitions 4️⃣ Reform financing - from regressive subsidies to targeted, equity-focused transfers 🔁 Social protection must be a pre-emptive platform for resilience. In an age of climate risks, tech disruption, geo-political conflicts, and demographic shifts, it’s time to evolve our systems from safety nets to springboards. Because security isn't just about schemes - it's about the society we choose to build.

Yesterday, the UK Government released its Modern Industrial Strategy and Digital and Technologies Sector Plan. The strategy is ambitious, including a £4 billion capital injection via the British Business Bank to unlock £12 billion in private investment; £670 million for development and adoption of quantum computers, and £54 million for a new Global Talent Taskforce. But beyond the numbers, what matters is this: the government is designing industrial policy with scaling tech companies in mind. At Tech Nation and Founders Forum, we’ve been listening to our community of tech founders across the UK and actively relaying their feedback to No 10, DSIT, and HM Treasury over the last few months, calling for practical changes to unlock growth for UK tech scaleups. It’s clear from this plan that the government have been listening attentively to our founder feedback, and are prioritising tech innovation as a key gateway to growth for our country. What stands out: – Growth capital: Deepening the pool of scaleup capital available to UK founders with increased firepower from the British Business Bank, and a long-overdue move to unlock pension capital now underway. – Talent: Doubling down on how we attract the world’s top talent to choose the UK as home base; the TechFirst programme and AI scholarships show a serious commitment to building the UK’s tech workforce, from school leavers to PhDs to global fellows. – Infrastructure: From regional AI Growth Zones to faster data centre connections, this is the first strategy that sees physical and digital infrastructure as core to scaling startups and focuses on unblocking grid connections so founders from all across the country can scale brilliant ideas. – Regulation and procurement: With the Regulatory Innovation Office, AI sandboxes, and Defence-led R&D pathways, there’s now more room for founders to take the right risks. – Regional innovation: Significant cluster funding with guaranteed local allocations, so that we can turbocharge game-changing tech companies from all corners of the UK. The direction of travel is clear: The UK is committed to cementing its place as a global innovation hub and technology leader, but it takes all of us – founders, investors, enterprise corporations, Big Tech, policymakers, and startup operators – to put this plan into action and deliver its results. This plan is just the beginning, but we’re looking forward to working with the government and our broader Tech Nation community to make it a reality. #IndustrialStrategy #Digital #Tech #UK #ScaleUps #TechPolicy #FoundersForum #TechNation #FoundersPulse #Startups #Founders #Entrepreneurs #ItTakesaTechNation

WHY DOES GHANA NEED A FISCAL COUNCIL 1.      In recent years, Ghana’s fiscal policy management has come under scrutiny due to recurring budget deficits, debt sustainability concerns, and limited fiscal space. 2.      These challenges have exposed the need for stronger fiscal institutions that can promote transparency, accountability, and long-term discipline in public financial management. 3.      One such institutional reform is the establishment of an Independent Fiscal Council, as envisaged in Section 11 of the newly passed Public Financial Management (Amendment) Act, 2025 (Act 1136). The new act repeals the Fiscal Responsibility Act, 2018 (Act 982) and consolidates Ghana’s fiscal management laws under a single legal framework. 4.      Two key aspects of this law are the introduction of strict numerical budget balance and debt rules, as well as the establishment of an Independent Fiscal Council. The budget rules mandate an annual surplus of at least 1.5% of GDP on a commitment basis and set an upper debt-to-GDP ceiling of 45% by 2034. 5.      Meanwhile, the Independent Fiscal Council will be responsible for monitoring compliance with these fiscal responsibility rules, among other functions. 6.      The next step for the government is to establish the Independent Fiscal Council and ensure that it builds build the necessary technical and managerial capacity to effectively implement these fiscal rules. 7.      The empirical literature shows that having a fiscal council is associated with “more accurate and possibly less optimistic fiscal forecasts, as well as greater compliance with fiscal rules”.  However, the independence of such a Council is critical to achieving such compliance. 8.      Last week, The Imani Center for Policy and Education (IMANI CPE) and International Institute for Sustainable Development (IISD) held a stakeholder workshop in Accra, Ghana where it presented its cutting-edge research on designing fiscal frameworks that balance credibility with the flexibility needed to respond to economic challenges. 9.      The report provided a deep-dive analysis of the design options available to Ghana, drawing lessons from comparative country experiences in Africa and globally. It recommends a roadmap for operationalising the Council with a clear legal mandate, functional autonomy, and strong analytical capacity. These points were also expressed by various stakeholders. 10. Stakeholders at the workshop advocated for continued support and guidance to ensure the fiscal council effectively carries out its mandate.  We look forward to continuing this work with the government and other stakeholders in supporting the all important work of the Fiscal Council. Anahí Wiedenbrüg Fernando Morra Franklin Cudjoe DENNIS ASARE Josephine Adjei-Tenkorang International Institute for Sustainable Development Imani Center for Policy and Education