Expenditure Archives - Wontumi Online

05 Jun

Ghana’s Fiscal Adjustment Underway, Quarter 1 Data Shows – Report

wontumionlineBusinessExpenditure, fiscal adjustment, Fiscal deficit, IC Securities, Primary balance, Revenue

A lower-than-targeted primary deficit indicates that Ghana’s fiscal adjustment is underway, IC Research, the analytical arm of IC Securities has stated. The country recorded a primary deficit of ¢596 million (0.1% of Gross Domestic Product) in the first quarter of 2023, against the target deficit of ¢4.6 billion (0.6 percent of GDP). According to IC Research, fiscal adjustment is underway, with the help of expenditure containment. The revenue and expenditure dynamics revealed that the fiscal adjustment in quarter one of 2023 was largely driven by expenditure controls instead of the revenue-based consolidation envisaged in the 2023 budget. The Treasury’s budget…

18 May

Ghana’s Fiscal Policy Characterised By Overspending, Structurally Weak Domestic Revenue Mobilisation – IMF

wontumionlineBusinessExpenditure, fiscal council, Fiscal Policy, imf, Revenue Mobilisation

Ghana’s fiscal policy has been characterised by recurrent periods of overspending, the International Monetary Fund (IMF) has stated in a statement after approving the $3 billion bailout package for Ghana to revive its economy. According to the Fund, past budgets have been marked by overly optimistic forecasts despite the existence of a fiscal council. It explained that the fiscal rules adopted in 2019 lack a debt target and feature an overly complex double operational rules system, with poorly defined escape clauses and no effective enforcement mechanisms. It said “Ghana’s fiscal framework is also weakened by persistent challenges in public financial…

13 Apr

Ghana’s Tax Revenue To Grow Strongly In 2023 And Subsequent Years – IMF

wontumionlineBusinessApril 2023 Fiscal Monitor Report, Expenditure, GRA, imf, tax revenue

Ghana’s tax revenue is expected to grow strongly this year and the next five years, the International Monetary Fund April 2023 Fiscal Monitor Report has revealed. According to the report, the country’s tax revenue to Gross Domestic Product (GDP) is estimated at 17.2% in 2023. This is from 15.6% recorded in 2022. Per the figures, the country’s tax-to-GDP ratio will inched up to 17.9% in 2024 and then expand further to 18.4% in 2025. It will subsequently inched up to 18.7% in 2026 and remain stable in 2027 and 2028 respectively. This will almost push the tax revenue to the…

30 Dec

2023 Budget Will Boost Revenue But Expenditure Estimate Is Not Realistic – Fitch Solutions

wontumionlineBusinessExpenditure, Fitch solutions, Minister of Finance, Revenue, VAT

Research and market information firm, Fitch Solutions, expects Ghana’s revenue collection to improve significantly in 2023 on the back of an increase in the Value Added Tax (VAT) rate and other tax measures. However, it is worried the expenditure estimate for next year is well above its 2022 target, despite its weak fiscal position. Speaking on the outlook of the Ghanaian economy for 2023, a Senior Country Risk Analyst at Fitch Solutions, Mike Kruninger, expressed worry that the 2022 Budget was expansionary rather than contractionary and failed to address the weak economic fundamentals. “Minister of Finance, Ken Ofori Atta, presented…