The government’s projected economic growth rate of 5.8% for 2022 has been revised to 3.7%.

This was disclosed by the Finance Minister, Ken Ofori-Atta during the presentation of the mid-year budget to Parliament for approval on Monday.

According to the Minister, the revision has become necessary due to global developments such as the Russia-Ukraine war which has caused the revenue measures to underperform and the surge in inflation to 29.8% as of June 2022.

He also cited the cedi depreciation against the dollar which has resulted in high cost of living and labour agitations as the cause of the revision of the growth rate.

“In the light of the significant changes in the global environment and our own unique challenges, we have revised our economic growth estimate for 2022 to 3.7% down from 5.8% as stated in the 2022 budget,” Ken Ofori-Atta said.

He explained that the government, in addition, has revised all other macro-fiscal targets for 2022.

“Based on the development for the first six months of 2022 and outlook for the rest of the year, we have accordingly revised the macro-fiscal targets for 2022 as follows; non-oil GDP growth of 4.3% down from 5.9%, end period inflation of 28.5% up from 8%, the overall deficit of 6.6% of GDP down from 7.4%, primary surplus 0.4% of GDP up from a surplus of 0.1% of GDP and a gross international reserve of not less than three months import cover,” he said.

Government has also announced some domestic revenue measures for the remaining half of the year to finance the economy.

The measures include; the electronic collection of VAT revenue (eVAT) effective 1st October, 2022, the local government, the assemblies and the GRA to launch an end-to-end digitalised process by August for collection of property rate.

Others include; “Extension of Waiver of Interest & Penalty to Dec 2022; and Introduction of upfront payment of VAT on importers not registered for VAT with implementation start date of 1st October 2022.”