Be creative in generating revenue. Ghana's economic growth forecast for 2017 has increased to 7.9%, and the country anticipates 6.8% growth for the following year as the economy recovers. The previous Spending plan and Financial Approach Articulation introduced to Parliament, the second since President Nana Addo Dankwa Akufo-Addo expected office in January, came as the nation attempts to stick to a Global Money related Asset program to decrease its monetary deficiency and the public obligation and settle the unstable nearby cash.
From a revised 6.3% in 2017, the government wants to reduce the deficit to 4.5% of GDP in 2018. Expansion is projected at 8.9 percent, contrasted with 11.2 percent beforehand. It intends to spend GH62 billion, or 25.7 percent of GDP, which is 14.5 percent more than the budget for the previous year. The arranged use incorporates arrangements for obligation overdue debt installments.
The first half of the year saw macroeconomic stability, with the most important indicators like inflation, the exchange rate, interest rates, external accounts, and international reserves gradually improving. It is comforting to note that the strong performance was achieved despite a poor revenue performance, as the government was forced to reduce spending due to poor revenue flows.
The decline in revenue resulted in a decrease in the expenditure of GH4.6 billion, or 16.7%, which was greater than the revenue shortfall. The goal of spending GH27.6 billion was met, and total expenditure was reduced to GH23.0 billion across all major components. The Everyday Realistic is, nonetheless, stressed on the grounds that the public authority's failure to meet its projected income execution represents an extensive risk to monetary combination endeavors.
The low income to-Gross domestic product proportion recommends that the country's genuine homegrown income misses the mark regarding what it's financial potential and institutional improvement ought to create. Even though we praise the budget as a model for the country's turnaround, we want to remind the government that policies and budgets are meant to be implemented, not put off.
We need not remind it of the numerous failures in its major flagship programs, such as the one-million-dollar, one-district, one-factory, and one-village initiatives. We are aware that these are programs with good intentions, but the government has not been able to put them into action due to a lack of funds. As a result, the Daily Graphic is urging the government to reconsider some of the concessions provided by the Free Zones Act so that operators in the zone can contribute to the revenue generated by the government.
During the budget presentation, we join the Institute of Fiscal Studies' call for the Ministry of Finance to capture, monitor, and report on the financial situation of state-owned enterprises (SOEs) in a transparent and comprehensive manner. The utilization of technology to facilitate taxation in the informal sector presents an even greater opportunity. The possibility of using mobile banking to pay taxes is intriguing.
If the government takes this approach, it will immediately reduce the amount of interaction between tax officials and taxpayers, which will reduce the likelihood of harassment, collusion, and corruption. Domestic tax revenue will rise and the government will have the financial room to carry out its programs if these suggestions are carefully implemented.
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