The government expects its revenue mobilization measures to yield massive results within the medium-term. As a result, it expects to mobilizeGH¢89.1 billion (17.9% of GDP) as total revenue, including Grants for the 2022 fiscal year.
This represents a nominal growth of 23 percent over the projected outturn for 2021. The Finance Ministry revealed this in its 2022-2025 Budget Preparation Guidelines.
“Total Revenue and Grants is projected at GH¢89.1 billion (17.9% of GDP) for 2022 and represents a nominal growth of 23 percent over the projected outturn for 2021”.
Ministry of Finance
Government expects its revenues to increase to GH¢100.6 billion (17.9% of GDP) in 2023. The trend is expected to continue as projected revenues for 2024 and 2025 are GH¢112.5 billion and GH¢126.3 billion respectively.
Non-Oil Tax Revenue
Of the 2022 projected Revenue, gross non-oil Tax Revenue is estimated at GH¢70.5 billion (14.2% of GDP). This represents a per annum growth of 23.5 percent. However, on net basis, thus, excluding tax refunds, non-oil Tax Revenue is estimated at GH¢66.96 billion.
On the other hand, Non-oil Non-Tax revenues from MDAs that generate Internally Generated Funds (IGFs) will amount to GH¢8.41 billion in 2022. Government expects this to increase by about 14.8 percent thereafter.
Government reveals that its Grants disbursements will be project related over the period. Specifically, the ministry expects grants to dwindle from GH¢599.89 million in 2022 to GH¢157.71 million in 2025.
The 2022-2025 Budget Preparation Guidelines
The Budget Preparation Guidelines will facilitate the preparation of the 2022-2025 Budget by all government agencies. This include Ministries, Departments and Agencies (MDAs) as well as Metropolitan, Municipal and District Assemblies (MMDAs).
The Guidelines provides the policy direction of government, instructions on the processes and procedures. It also highlights budget expenditure ceilings to guide MDAs and MMDAs towards the preparation of the 2022-2025 Budget.
Government of Ghana noted that it recognizes the need to be at the forefront to promote the building blocks for an inclusive and sustainable recovery post COVID-19. As a result, it noted that its 2022 budget and the medium term focus on creating opportunities.
More importantly, it aims at providing solutions towards achieving sustainable and broad-based economic growth. Government expects to achieve these goals without harming the climate or leaving families in poverty.
A focus on economic transformation
The Ministry reiterates government’s commitment to transform the economy and bring prosperity to all Ghanaians. The focus is on industrialization and digitization as well as job creation for the youth.
“Government, therefore, will focus on revitalizing and transforming the economy. The approach is to catalyze the private sector in targeted areas to fast-track industrialization, competitive import substitution, digitalization, export expansion and the creation of decent jobs, particularly for the youth”.
Ministry of Finance
Other priority Areas
The government also outlined other priorityareas for 2022 and the medium term. Among them is supporting the health sector and expanding social safety nets. The government will also continue to implement its COVID-19 containment measures.
Moreover, the development of infrastructure, with priority focus on roads, railway, water and sanitation, hospitals and housing will also be key.
Also, Ghanaians must expect the implementation of bold reforms to increase revenue mobilization and the efficiency of public expenditures. Deepening structural reforms to make the machinery of Government work better for the people is also a priority. Furthermore, government indicated that it will roll out digital technologies to improve service delivery and diversify productivity.
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