Highlights-of-the-2022-Mid-Year-Budget-Review

Public Debt Dynamics

- The provisional nominal debt stock as at end June 2022 stood at GH ȼ 393,439.03 million representing 78.3 percent of GDP. This was up from GH ȼ 351,787.02 million at the end of December 2020. External and domestic debt represented 51.7% and 48.3% of total debt, respectively. - The increase in the debt stock was mainly as a result of the adverse impacts of COVID 19, the Russia Ukraine war, surging inflation and exchange rate shocks during Q1 2022 in particular, which saw a sharp depreciation of the currency. This decline in the exchange rate was due to the downgrade of government credit ratings, as well as seasonal demand pressures from corporate and the energy sectors. - As a result of the challenges faced during the year, the government decided to return to the International Monetary fund (IMF) for support in its Enhanced Domestic Program in order to tackle its balance of payments issues. After their first visit, the IMF team acknowledged that Ghana is facing a challenging economic and social situation which has led to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation and a surge.

Highlights of the 2022 Mid-Year Budget Review

Enhancing VAT Mobilisation by digitilising the collection of VATrevenues (e-VAT) to minimise VAT mobilisation gaps and assist government achieve it's tax-to-GDP target of 20% within the medium term.

Introducing upfront payment of VAT on importers not registered for VAT effective 1st October 2022.

Extending the waiver of interests and penalties to give opportunity to non-registered taxpayers to take advantage of the waiver scheme and offer operational records of these taxpayers to government.

Revitalising non-tax revenue mobilisation by introducing an end-to-end digitalised process for property rate mobilisation. This is geared towards enhancing the mobilisation of non-tax revenues to assist government achieve its' medium term targeted non-tax-to-GDP ratio of 4%.
Minimising government's tax expenditures through tax exemptions. the long expected Tax Exemptions Bill has been passed awaiting Presidential assent and once implemented, it wil ensure a more harmonised approach to granting tax exemptions and eliminiate associated administrative gaps.