• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, October 22, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Domestic revenue plunges to lowest levels in 6 years

M.Cby M.C
September 30, 2021
Reading Time: 3 mins read
M.Cby M.C
in Sub Top Stories1, Economy
0
Domestic revenue plunges to lowest levels in 6 years

Domestic revenue mobilization continues its unstable path with so much inconsistencies over the years despite efforts to raise it in order to limit the reliance on external financing.

In 2020, domestic revenue mobilization as a percentage of Gross Domestic Product (GDP) declined to 14.1 percent, the lowest recorded since 2015.

With an average of 15 percent over the past 6 years, domestic revenues remain low, very much below;ideal levels which does not befit the status of Ghana as lower middle income country.   

RelatedPosts

Professionals question IMF’s Impact on Ghana’s Economy

Ghana Beats Fiscal Target as Budget Deficit Shrinks to GH¢19.7bn

Africans Must Own the Future of the World – Speaker Bagbin

Ghana continues to rely heavily on taxes to raise its revenue, which even though not bad, is worrying;looking at the percentage of revenues raised through taxes. Businesses and individuals have consistently complained of the tax burden, which they believe, is crippling;businesses and also reducing the purchasing power of consumers.

Ernest Addison
Dr. Ernest Addison – Governor of the Bank of Ghana

For instance, in 2020, the government mobilized a total of GH¢44.5 billion through taxes, representing 80.6% of Total;Receipts, according to the 2020 Annual Report & Financial Statements of the Bank of Ghana.  As of End-July 2021, domestic revenues as a percentage of the country’s GDP stood at 7.7 percent whilst tax;revenues accounted for 6.4 percent.  

Non-Tax Revenues

 It is worrying to note that the country has not been able to exploit the several non-tax;avenues it has to improve its domestic resources. According to the Bank of Ghana, Non-Tax Revenues amounted to GH¢9.5 billion, accounting;for only 17.1% of Total Receipts in 2020. The contribution of Grants has also been minimal as it brought in;GH¢1.2 billion last year, representing 2.2% of Total Receipts.

ADVERTISEMENT

In 2021, the trend seems to continue despite several initiatives by the government and the Ghana Revenue Authority to turn the tables. In the first seven months of this year, Ghana recorded a cash fiscal deficit of 6.1 percent of GDP, against the target of 5.7 percent of GDP. The Bank of Ghana said “this was due to higher revenue shortfalls”.  Between January and July 2021, total revenue and grants amounted to GH¢34.3 billion (7.8 percent of GDP), below the target of GH¢38.8 billion (8.8 percent of GDP).

20% revenue-to-GDP ratio target

Even though Ghana targets tax-to-GDP ratio of 20% in 2023, the 2020 Annual report of the Bank of Ghana shows that this will be very difficult for the country to achieve. Relying heavily on taxes means that the country’s domestic revenues remain fragile to the developments in the economy. Once businesses encounter challenges, as it is happening now due to the pandemic, revenues will decline significantly.  

Ghana Finance Minister Ken Ofori Atta 3
Ken Ofori-Atta – Minister of Finance

 The report shows that the country mobilized its highest domestic revenues in 2015 which accounted for 16.0 percent of the GDP.  In 2016, this declined to 14.8 percent, rose to 15.2 percent in 2017 but once again dropped to 15.1 percent in 2018. It further nosedived to 14.6 percent in 2019 before tumbling to 14.1 percent in 2020.

Thus, the country needs sustainable measures that will ensure the stability of domestic revenue mobilization through measures that will ensure a shift from tax to non-tax revenue sources. This will create space for businesses to expand and create jobs which will further widen the tax net.  

READ ALSO: Right Structures Needed for Effective RTI implementation- Esther Ahulu

Tags: Bank of GhanaCOVID-19Domestic RevenuesGDPtax-to-GDP ratio
Please login to join discussion
Previous Post

Government to build over hundred courts under district assembly common fund

Next Post

Ghana.gov is Serving its Purpose – FNB Boss

Subscription Form

Related Posts

Professionals question IMF’s Impact on Ghana’s Economy
Economy

Professionals question IMF’s Impact on Ghana’s Economy

October 22, 2025
Ghana Beats Fiscal Target as Budget Deficit Shrinks to GH¢19.7bn
Economy

Ghana Beats Fiscal Target as Budget Deficit Shrinks to GH¢19.7bn

October 22, 2025
Speaker of Ghana’s Parliament, Rt. Hon. Alban Kingsford Sumana Bagbin
General News

Africans Must Own the Future of the World – Speaker Bagbin

October 22, 2025
Former Chief Justice Sophia Akuffo
Extractives/Energy

Sophia Akuffo Calls for Ethical Resource Use to Shift “From IMF Bailout to Breakthrough” 

October 22, 2025
Yields Climb as Treasury Struggles to Hit Targets in Latest Auction
Securities/Markets

Yields Climb as Treasury Struggles to Hit Targets in Latest Auction

October 22, 2025
24-Hour Economy Cost Underestimated, Sarkodie Bemoans
Economy

24-Hour Economy Cost Underestimated, Sarkodie Bemoans

October 21, 2025
Minority Accuses Government of Running Away from Anti-LGBTQ+ Bill
General News

Minority Accuses Government of Running Away from Anti-LGBTQ+ Bill

by Silas Kafui AssemOctober 22, 2025
Louvre Director, Laurence des Cars.
Europe

Louvre Director Admits Security Failure

by Comfort AmpomaaOctober 22, 2025
Forestry Commission Shares Ghana’s Illegal Mining Plights with Zambian Delegation
Extractives/Energy

Forestry Commission Shares Ghana’s Illegal Mining Plights with Zambian Delegation

by Bless Banir YarayeOctober 22, 2025
Professionals question IMF’s Impact on Ghana’s Economy
Economy

Professionals question IMF’s Impact on Ghana’s Economy

by Michael Teye-Bio NaduteyOctober 22, 2025
Deputy Governor Hails Ghana’s GH¢3 Trillion Digital Payment Boom
Banking

Deputy Governor Hails Ghana’s GH¢3 Trillion Digital Payment Boom

by M.COctober 22, 2025
Israel’s Expansion Of Settlements In Occupied West Bank Slammed
Asia

Knesset Advances Bill To Impose Israeli Sovereignty On Occupied West Bank

by Comfort AmpomaaOctober 22, 2025
Minority Accuses Government of Running Away from Anti-LGBTQ+ Bill
Louvre Director, Laurence des Cars.
Forestry Commission Shares Ghana’s Illegal Mining Plights with Zambian Delegation
Professionals question IMF’s Impact on Ghana’s Economy
Deputy Governor Hails Ghana’s GH¢3 Trillion Digital Payment Boom
Israel’s Expansion Of Settlements In Occupied West Bank Slammed

Recent News

Minority Accuses Government of Running Away from Anti-LGBTQ+ Bill

Minority Accuses Government of Running Away from Anti-LGBTQ+ Bill

October 22, 2025
Louvre Director, Laurence des Cars.

Louvre Director Admits Security Failure

October 22, 2025
Forestry Commission Shares Ghana’s Illegal Mining Plights with Zambian Delegation

Forestry Commission Shares Ghana’s Illegal Mining Plights with Zambian Delegation

October 22, 2025
Professionals question IMF’s Impact on Ghana’s Economy

Professionals question IMF’s Impact on Ghana’s Economy

October 22, 2025
Deputy Governor Hails Ghana’s GH¢3 Trillion Digital Payment Boom

Deputy Governor Hails Ghana’s GH¢3 Trillion Digital Payment Boom

October 22, 2025
Israel’s Expansion Of Settlements In Occupied West Bank Slammed

Knesset Advances Bill To Impose Israeli Sovereignty On Occupied West Bank

October 22, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address