Introduction

Parts III and IV evaluate the effect of the several tax policy and administration changes from 2017 to date. Several of these reverse policies and updates of tax laws that Parliament enacted between 2009 and 2016. Since most of the recent reversals distort the tax structure and increase direct and indirect tax burdens, they have made tax administration and compliance worse and not been successful in meeting related ambitious fiscal and budget goals.

The tendency to blame revenue shortfalls on weak tax collection mechanisms distracts from policy failures, given pre-2017 projections of a buoyant economy from the new Sankofa and TEN oil fields (increased output and better prices) and from the Energy Sector Levies Act (ESLA). Government needed to maintain or improve on the tax structure to support this goal.

Part III uses the provisional outturn and 2019/20 projections to discuss total revenues its and high-level domestic and external sources, including taxes (direct and indirect); non-tax revenues (income and fees); and grants (budget and sector support). Part IV discusses the sub-components or taxes on income and property; domestic goods and services; and international trade. Part V continues with expenditures—in the series that started in Part I with the Public Debt and Part II with the overall budget deficit and fiscal balances (i.e., cash and commitment basis).

Read the full Part III below.