• 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 Business

Spend wisely, broaden tax base to close huge fiscal gap – World Bank

5 years ago
in Business, highlights, Home, home-news, latest News
2 min read
0 0
0
world bank - norvanreports

world bank - norvanreports

51
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

The World Bank has intensified its call for Ghana and other African countries to spend wisely and implement innovative strategies which will broaden the tax net to capture every income-generating activity in order to close the vast fiscal gap induced by the pandemic.

In its Africa’s Pulse report (October 2020), the Bretton Woods institution noted that Ghana is among the countries which are expected to see fiscal deficit increase significantly to hit double-digits by the end of 2020, due to loss of revenue and increased spending. This, the bank says, will further shoot-up public debt in the year.

The country now has its public debt figure standing at more than GH¢263billon, representing 68.3 percent of GDP – with external debt forming the largest part at 35.8 percent of GDP.

Meanwhile, revenue mobilisation in first-half of the year fell short of its target by 26 percent, resulting mainly from shortfalls in oil revenue, Customs receipts and non-oil tax revenues. Total Revenue and Grants for the period amounted to GH¢22 billion, compared with a programmed target of GH¢29.7 billion.

For this reason, the World Bank has proposed a raft of measures which include prudent spending, digitalising the tax system to capture all economic activity, and ensuring State Owned Enterprises (SOEs) are not abusing resources, among others, to address this situation.

“Broadening the tax base can build up fiscal space by raising government revenues. The insertion of digital tools into public administration may help expand the set of taxpayers, reduce costs, and improve tax performance. Governments can better identify taxpayers by issuing digital IDs.”

“They can also establish online platforms for e-filing and e-payments of taxes and import duties. Digital technologies help strengthen tax administration by lowering transaction costs and allowing innovation in tax policy. Digital tax administration may reduce tax evasion and fraud.”

RelatedPosts

AngloGold Ashanti Doubles Earnings and Free Cash Flow on Higher Gold Prices, Production Surge in Q2 2025

Africa’s Richest Country to Boost Continental Trade Ties After U.S. 30% Tariff Hit

Nigeria Hits Panic Button as West Africa Logs $2.1bn in Suspicious Crypto Transactions

“Fiscal authorities need to spend their resources efficiently by cutting non-essential outlays and re-prioritising spending while maximising the impact of such expenditure on economic activity – thus creating fiscal space. Curbing unnecessary spending includes terminating ghost-workers and avoiding permanent increases in public salaries,” the report stated.

It added: “Improving the performance of state-owned enterprises (SOEs) also involves cutting unnecessary costs in public expenditures. Amid widened deficits and high debt vulnerabilities, it is imperative for SOEs to use public resources efficiently. In this context, several actions can be undertaken to improve SOE performance.”

“One, periodic reviews of SOEs to assess the amount and quality of the goods/services supplied; (2) provision of the right incentives to boost managers’ performance and the capacity of government agencies to improve SOE oversight; and (3) a level playing field for SOEs and private firms to foster greater productivity and avoid protectionism (that is, by limiting special treatment for SOEs).”

The country’s debt situation has been exacerbated by impacts from the pandemic – even pushing the Finance Minister Ken Ofori-Atta to revise the Debt Sustainability Analysis (DSA) conducted in 2019. The 2020 DSA revealed that Ghana’s debt distress from external and domestic sources remains sustainable but high.

According to the Finance Minister, impacts from the pandemic create an urgent need to stimulate the feasible fiscal space available to meet government’s funding requirements in the light of current debt levels; and to make sound budgetary and funding decisions while evaluating the solvency and liquidity status of the public debt portfolio taking into account current and future debt service obligations.

The shocks from COVID-19 (fall in crude oil prices and decline in trade), he adds, are expected to deepen the current account and fiscal deficits over the medium-term – resulting in an elevated debt path compared to the pre-COVID-19 2020 DSA.

“Nevertheless, fiscal costs – including those associated with the pandemic response and measures to support economic activity, as well as a more prolonged crisis – could have the greatest impact on debt sustainability,” Mr. Ofori-Atta said in the Mid-year Budget document.

Tags: fiscal gapGDPSOEstax baseWorld Bank
No Result
View All Result

Highlights

CID Recovers 43 Stolen Luxury Vehicles Smuggled into Ghana

2025 Mid-Year Economic Review: Fiscal Discipline is a Necessary Pain

Ledecky’s Heroics Highlight Underwhelming US Campaign at World Aquatics Championships

CAF Establishes New Infrastructure Department to Enhance Stadium Development Across Africa

Bibiani Gold Stars Set to Begin GPL Title Defence Against Bechem United as Fixtures for 2025/26 Season Are Released

Gov’t Increases Producer Price of Cocoa to GHS 51,660 per Tonne for 2025/2026 Season

Trending

Business

AngloGold Ashanti Doubles Earnings and Free Cash Flow on Higher Gold Prices, Production Surge in Q2 2025

August 4, 2025

AngloGold Ashanti Doubles Earnings and Free Cash Flow on Higher Gold Prices, Production Surge in Q2 2025...

Africa’s Richest Country to Boost Continental Trade Ties After U.S. 30% Tariff Hit

August 4, 2025

Nigeria Hits Panic Button as West Africa Logs $2.1bn in Suspicious Crypto Transactions

August 4, 2025

CID Recovers 43 Stolen Luxury Vehicles Smuggled into Ghana

August 4, 2025

2025 Mid-Year Economic Review: Fiscal Discipline is a Necessary Pain

August 4, 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.