Total revenue and grants for second quarter of 2024 was GH¢74.65 billion, about 7.1% of Gross Domestic Product, the Bank of Ghana Monetary Policy Report has revealed.

This was lower than the target of GH¢76.07 billion (7.2% of GDP).

However, the outturn represented a shortfall of 1.9% with respect to the target, but a year-on-year growth of 24.6%. Domestic revenue totalled GH¢74.19 billion (7.1% of GDP), marginally below the target of GH¢74.41 billion (7.1% of GDP).

The report observed a mixed performance for the various tax handles.

Tax Revenue

Tax revenue, comprising taxes on income & property, taxes on domestic goods and services and international trade taxes, excluding oil and gas related taxes was GH¢59.70 billion (5.7% of GDP), higher than the target of GH¢59.30 billion (5.6% of GDP).  This represented a marginal overperformance by 0.7%.

Taxes on income and property (made up of personal income tax (PAYE), company taxes [including taxes on oil], royalties from oil and minerals, and other direct taxes) totalled GH¢28.68 billion (2.7% of GDP), 4.5% above the target of GH¢27.44 billion (2.6% of GDP).

According to the report, all the components exceeded their targets with the exception “Personal taxes” and “Company taxes on oil”. This was also higher than the GH¢23.73 billion collected in the corresponding period of 2023, reflecting a year-on-year growth of 20.8%.

Taxes on domestic goods and services (consisting of domestic VAT, excise duty, GET Fund Levy, National Health Insurance Levy, and Communication Service Tax) was GH¢25.97 billion (2.5% of GDP), below the target of GH¢28.30 billion.

On year-on-year basis, the outturn represented a growth of 24.2%.

Non-Tax Revenue

Non-tax revenue raked in GH¢11.27 billion, missing the target of GH¢11.66 billion by 3.4%, but recorded a year-on-year growth of 36.5%.

This performance was mainly due to lower-than-budgeted lodgements, resulting mainly from the underperformance of “Fees & Charges”.

Dividend payments also mitigated the offset of the non-tax revenue handle from its target.

Taxes on International Trade

Taxes on international trade (comprising mainly import duties) was GH¢8.39 billion, above the target of GH¢7.63 billion by 10.0% and a year-on-year growth of 39.1%.

Other Revenue

“Other revenue” of GH¢2.54 billion failed to meet its target of GH¢2.99 billion, recording a negative deviation of 15.1%, but was above the total of GH¢2.44 billion collected in the corresponding period of 2023.

This reflected a year-on-year increase of 4.1%.

Grants

Grants received was GH¢457.3 million, significantly below GH¢1.65 billion programmed for the review period, thus falling below its target by 72.3%.

This outturn was lower than the GH¢864.7 million received in the corresponding period of 2023.