The Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, has recommended that the government takes a critical look at setting realistic revenue targets.

This recommendation follows his assessment of the 2022 revenue dispensation.

“Going into 2023, we ought to look at credible or realistic revenue target. We said we’re going to raise revenue by 46.8% and equally we’re going to increase expenditure by 39.5%. What this means is that we’re not doing much to cut down on our deficit. The question I also ask is, how credible are these estimates? When in our history have been able to increase revenue by 46%?,” he said on Business Live on Friday.

According to the Professor, “we ought to be more careful with our estimate so that policy credibility is always established otherwise, we’ll be having challenges with our projections and people will continue to fight back.”

He concluded that heading into 2023, there should be “a crisis communication plan just like we did during Covid.” He explained that without an effective communication plan, “the market will feed on noise.”

He also warned that without a proper communication plan, the economy is likely to resume its cedi depreciation trajectory, high increases in prices and hoarding which he termed “irrational behaviors in the last three months.”

Earlier on the show, the professor indicated that many policies have not been backed by research, saying that could have made things much better.

Meanwhile, President Akufo-Addo has urged Ghanaians to support the revenue mobilization approaches as detailed in the 2023 budget in order to solve the country’s fiscal challenges.

On December 2, 2022 while speaking at the 38th Farmers’ Day Celebration, the President emphasized the importance of the revenue measures, saying that although they are tough, they are important in addressing the “hydra-headed challenge confronting us.”

According to the revenue measures included in the budget, VAT rate is set to increase by 2.5 per cent, an e-Levy review to 1 per cent and a scrapping of the daily GH₵100.00 threshold of mobile money transaction.

Preceding the coming into effect of the 2023 budget is a recent announcement of a reversal of the 30% discount on import values of goods as well as a 10% discount on Home Delivery of Vehicles.

This is a measure employed to facilitate more revenues income to the government. According to the Ghana Revenue Authority (GRA), the directive takes effect on January 1st 2023.