2022 Budget: Government aims to grow domestic revenues by 44%

November 18, 2021 / Comments (0)

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The government has unveiled an ambitious plan to grow domestic revenues by 44 percent in 2022.

It aims to grow the amount mobilised locally from the projected GH¢70.3 billion, equivalent to 16 percent of gross domestic product (GDP) in 2021, to GH¢99.5 billion in 2022, equivalent to 20 percent of GDP.

The amount is part of plans to mobilise GH¢100.5 billion in total revenue and grants next year.

Presenting the 2022 Budget to Parliament on Wednesday, the Minister of Finance, Mr Ken Ofori-Atta, said the resource mobilisation for 2022 is underpinned by revenue policy initiatives.

“The increase in domestic revenue by 44 percent is as a result of the impact of a major progressive tax policy, (“Baako P3”) complemented by improvements in tax compliance and reforms in revenue administration that we have outlined in this budget,” he said.

He mentioned a 1.75 percent tax to be imposed on electronic transactions and a planned review fees and charges by ministries, departments and agencies (MDAs) as some of the avenues to be used to mobilise funds.

Source: Graphic Online

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