Government to expand domestic revenue mobilisation with new initiative
The government, for the second half of this year and beyond, is seeking to expand its domestic revenue mobilisation efforts with the launch of a new initiative.
The new initiative dubbed Revenue Assurance and Compliance Enforcement (RACE), according to the Finance Minister, who made the disclosure during his presentation of the 2021 Mid-year budget review is to identify and eliminate revenue leakages while reinforcing the culture of tax compliance nationwide.
According to the Finance Minister, the new initiative which forms part of the government’s digitalization initiatives is aimed at building a robust tax system and is expected to complement tax mobilization efforts of the Ghana Revenue Authority (GRA).
The RACE initiative, the Minister further disclosed on the floor of Parliament, will be duly launched on Monday, August 2, 2021.
Meanwhile, the government contrary to expectations of a review of its macroeconomic targets, in the 2021 Mid-year budget review maintained its macroeconomic targets for this year.
“Mr. Speaker, this Mid-Year Fiscal Policy Review that I am presenting does not come with a supplementary budget and our revised fiscal framework for 2021
is kept within the fiscal target of 9.5 percent of GDP. We are staying within the 2021 Appropriation. I am here today, respectfully, Mr. Speaker, not to ask for more money, not to ask for more taxes, but, simply, to update you on the performance of the economy for the first half-year of 2021 and our plans for the unexpired term of the year, consistent with section 28 of the PFM Act,” said the Finance Minister.
The government’s macroeconomic targets for this year outlined in the 2021 budget include; Overall GDP target of 5 percent, non-oil GDP of 6.7 percent, end-year inflation of 8 percent, fiscal deficit of 9.5 percent of GDP, primary balance deficit of 1.3 percent of GDP and gross international reserves of 4 months import cover.
