Gov’t Revenue Falls Short of Q2 2024 Target Despite Strong YoY Growth
The Bank of Ghana’s latest Monetary Policy Report reveals that total revenue and grants for the second quarter of 2024 amounted to GH¢74.65 billion, equivalent to 7.1% of GDP, falling short of the GH¢76.07 billion target (7.2% of GDP).
The outturn represents a modest 1.9% shortfall against projections but marks a robust 24.6% increase year-on-year.
Tax revenue, which includes levies on income, domestic goods, and international trade, reached GH¢59.70 billion (5.7% of GDP), marginally surpassing the GH¢59.30 billion target.
This 0.7% overperformance was driven by stronger-than-expected receipts from taxes on income and property, which grew 4.5% to GH¢28.68 billion. However, personal taxes and company taxes on oil underperformed relative to targets, reflecting ongoing challenges in these areas.
Meanwhile, taxes on domestic goods and services disappointed, coming in at GH¢25.97 billion, below the GH¢28.30 billion target, though still registering a 24.2% increase year-on-year.
Non-tax revenues also fell short of expectations, recording GH¢11.27 billion, a 3.4% miss relative to the GH¢11.66 billion forecast, despite an impressive 36.5% growth over the same period last year.
In contrast, taxes on international trade outperformed, generating GH¢8.39 billion, 10% above the GH¢7.63 billion target, supported by stronger-than-anticipated import duties.
However, grants were a weak spot, with inflows of GH¢457.3 million falling a dramatic 72.3% below the GH¢1.65 billion projected, underscoring the challenges in securing external funding.
