• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Seth Terkper makes strong argument against use of primary balance as fiscal anchor

2 years ago
in Economy, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
213
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Seth Terkper makes strong argument against use of primary balance as fiscal anchor

Former Finance Chief, Seth Terkper, has made a strong case against the use of primary balance instead of fiscal balance as the country’s fiscal anchor.

According to Mr Terkper, the use of primary balance as a fiscal anchor both in the IMF programme and the 2024 budget, defeats the country’s objectives of reducing its debt stock and paying arrears.

“Using primary balance means no emphasis on fiscal balance as well as no emphasis on reducing debt and arrears which are the main headaches of the country,” he remarked speaking during the X Space discussion with NorvanReports and the Economic Governance Platform on the topic “Unraveling the Facts and Numbers Behind the 2024 Budget” on Thursday.

“Let’s focus on fiscal balance and not on primary balance if we want to take the economy out of the current challenges,” he added.

RelatedPosts

GRTCC Suspends 20% Transport Fare Hike Following Talks with Transport Ministry

BoG Postpones National Launch of Cedi@60 Anniversary Following Helicopter Tragedy

Japanese Automakers Toyota and Honda Take a Big Hit From Trump’s Tariffs

Mr Terkper further argued that, Ghana should set more ambitious fiscal targets than the IMF Program requires with these fiscal targets being; (a) Overall Fiscal Balances (commitment and cash bases) targets; (b) shift to semi-accrual accounting to account for arrears and other liabilities; and (c) a debt repayment or amortization methods.

Setting these fiscal targets, he argued, are necessary since the economy is very fiscally challenged, with huge arrears, and has defaulted in meeting debt commitments, adding that the primary balance shows an optimistic (positive) path to meeting its commitments under the IMF programme.

The main differences between the Primary and Fiscal Balances are interest payment, arrears (routine and exceptional), and debt repayment or amortization. Primary Balance is Total Revenue less Total Non-Interest Expenditure.

Speaking further during the X Space discussion and touching on the country’s revenue mobilisation efforts, Mr Terkper noted the country’s tax revenue has remained stagnant since 2013 and has not been able to go beyond its 2015 peak.

This is despite, the expansion of the Ghanaian economy and increased tax revenues.

Mr Terkper noted that the highest recorded levels of total revenue, domestic revenue and tax revenue in 2015 were 17.8%, 16.3% and 13.14 respectively as against the recorded 16.2%, 15.9% and 13% for total revenue, domestic revenue and tax revenue respectively for 2021 on the back of inflows due to the Covid pandemic.

This, he primarily attributed to stalled revenue reforms to be implemented by the Ghana Revenue Authority (GRA) to boost efficiency in tax revenue mobilisation efforts.

According to him, a re-engineering of tax revenue reforms are needed to increase the country’s tax revenue share to GDP.

Measures aimed at re-engineering the country’s tax revenues, he noted are present in the current IMF programme.

Tags: fiscal balanceprimary balanceSeth Terkper makes strong argument against use of primary balance as fiscal anchor
No Result
View All Result

Highlights

Multichoice Ghana Faces Licence Suspension Over Refusal to Cut DStv Prices as Deadline Expires Today

Oil Prices Rise After Trump Targets India’s Imports

Foreign Capital Inflows Into Banking Sector Hit Five-Year High in 2024

Electricity is Getting Cheaper Across Africa

Summary of Events Following Confirmation of Deaths of Defence and Environment Ministers, Six Others in Military Helicopter Crash

FDI Rises to 3-Year High as Reforms Boost Investor Confidence

Trending

Business

GRTCC Suspends 20% Transport Fare Hike Following Talks with Transport Ministry

August 7, 2025

GRTCC Suspends 20% Transport Fare Hike Following Talks with Transport Ministry The Ghana Road Transport Coordinating Council...

Bank of Ghana

BoG Postpones National Launch of Cedi@60 Anniversary Following Helicopter Tragedy

August 7, 2025

Japanese Automakers Toyota and Honda Take a Big Hit From Trump’s Tariffs

August 7, 2025

Multichoice Ghana Faces Licence Suspension Over Refusal to Cut DStv Prices as Deadline Expires Today

August 7, 2025

Oil Prices Rise After Trump Targets India’s Imports

August 7, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

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

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.