Fitch Solutions had said in its 2023 February Africa Monitor Report that Ghana’s 2023 revenue target is unrealistic.
In 2023, the government intends to collect total revenue and grants of ¢143,956 million, about 18.0% of Gross Domestic Product.
This however represents a 43.2% increase on the 2022 target.
“That said, we believe that the 2023 revenue target is unrealistic. While higher taxes will boost fiscal intakes, weakening economic activity on the back of still-elevated inflation and tighter monetary policy will cap revenue growth”.
“Indeed, we forecast the economy to expand by a weak 2.9% in 2023, well below Ghana's 10-year pre-pandemic average of 6.8%. In addition, easing global oil prices in 2023 (our Oil & Gas team projects oil prices to fall by 6.9% to an average of $95.0/barrels) will put downside pressure on receipts from the oil sector”.
Furthermore, it said the Government of Ghana has a track record of overestimating intakes.
“Taking these dynamics into account, we believe that total revenues will rise to ¢134.4 billion in 2023 (compared to the target of ¢144.0 billion) or 18.0% of GDP, from 15.0% of GDP in 2022”.
It continued that fiscal intakes will improve on higher taxes in 2023".
Latest Stories
-
Government renames UHAS after late Prof Mills
2 hours -
Wontumi spends night in EOCO custody after failing to meet bail conditions
3 hours -
Students say they ‘regret’ applying to US schools after visa changes
3 hours -
Christopher Bonsu Baah stars on Black Stars debut against Nigeria
3 hours -
Musk ‘disappointed’ by Trump’s tax and spending bill
3 hours -
French paedophile surgeon who abused hundreds sentenced to 20 years in jail
3 hours -
Chelsea win UEFA Europa Conference League after comeback win over Real Betis
4 hours -
Glacier collapse buries most of Swiss village
4 hours -
The Case for Reparations: A focus on Ghana
4 hours -
Nana Ampofoa Initiative tackles menstrual hygiene challenges among underprivileged female prisoners
4 hours -
2025 Unity Cup: Black Stars to settle for third-place playoff after defeat to Nigeria
4 hours -
UHAS to be renamed in honour of late Prof. Atta Mills
5 hours -
Wontumi granted GH¢50m bail by EOCO
5 hours -
Access Bank and DHL forge strategic partnership to empower African SMEs in global trade
5 hours -
AUCB appoints Frank Adu as first Chancellor
5 hours