YEA calls for review of Communication Service Tax funding cap

The Youth Employment Agency (YEA) has urged for a review of the funding cap on revenue from the Communication Service Tax (CST), arguing that it impacts the resources available to implement its employment programmes. Chief Executive Officer Malik Basintale made this point during his address to the Government Accountability Series at Jubilee House on Wednesday, October 21.

Under Section 23(b) of the Youth Employment Agency Act, 2015, 80% of CST revenue is designated as funding for the Agency. However, the application of the earmarked funds capping regime has created issues with predictability and adequacy of resources. While acknowledging the broader fiscal considerations, Mr Basintale believes a possible review of the capping framework, especially concerning youth employment financing, would greatly boost the Agency's ability to fulfill its mandate.

He also highlighted stringent procurement and commitment authorisation processes as potential delays in program implementation. Despite the necessity of these procedures for transparency, accountability, and fiscal discipline, he called for administrative streamlining to enhance efficiency without undermining these safeguards. The YEA maintains that more predictable funding would enable it to expand its interventions and improve employment opportunities for Ghanaian youth.