Tell us how we are going to generate IGF- NDC Communicator to Finance Minister

A Member of the National Communications Team, National Democratic Congress (NDC), Peter Kwasi Mensah, says Ghanaians are expecting the Finance Minister to make the public know how the country is going to generate internal revenue.

The Minister of Finance, Mr Ken Ofori-Atta, will today lay before Parliament, the 2021 mid-year budget review for its consideration and adoption.

The budget review, which is in accordance with Article 179 of the 1992 Constitution and the Public Financial Management Act 921, will give the fiscal authority an opportunity to revise macroeconomic targets and present a comprehensive economic outlook for the rest of the year based on inflows and outflows within the last six months of the year.

Coming on the back of a revenue shortfall in the last five months of the year as announced by the Monetary Policy Committee of the Bank of Ghana last Monday, the Daily Graphic has hints that the Finance Minister will use the supplementary budget to announce additional measures to shore up revenue mobilisation to be able to meet the end year revenue target.

The Finance Minister would also give some updates about the Ghana CARES Obaatampa programme which is meant to be a major driver of the government’s industrialisation programme.

In the area of expenditure, the Finance Minister is expected to announce measures that will keep the levels within projected target to avoid widening the deficit which has been a worry to all including the Breton Wood institutions and economic watchers.

Revenue

On the revenue side, the total revenue and grants amounted to GH¢22.6 billion (5.2 per cent of Gross Domestic Product (GDP) in the first five months of the year, compared to the same period in 2020 when it was GH¢20.26 billion, equivalent to five per cent of GDP.

Read Also: GRA witnesses GH¢212 million shortfall in tax revenue in first half of 2021

The bank said the outturn for the first five months of the year was below the projected amount of GH¢26 billion, equivalent to six per cent of GDP.

The government is aiming to collect GH¢72.5 billion in total revenue and grants, equivalent to 17.6 per cent of GDP, this year.

Mr Ofori-Atta, the Daily Graphic has gathered, will leverage the synchronisation of the Tax Identification Numbers (TINs), Social Security numbers and the National Identification numbers which has increased the eligible number of tax payers from about six million to over 14 million to widen the tax net.

There will, however, be no additional taxes or levies imposed our sources say except to encourage compliance among those eligible to pay tax.

Speaking on Atinka TV’s morning show, Ghana Nie, Peter Kwasi Mensah alleged that the Government is borrowing money to pay salaries of workers.

“To go beyond 76.% of GDP is dangerous. You have gone past HIPC. The borrowing must be cut down,” he said.

Ghana| Atinkaonline.com| Porcia Oforiwaa Ofori
Writers email: [email protected]

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