Our revenue target for 2020 is GHc67 billion-Minister
The Finance Minister Ken Ofori-Atta has said the government is expecting to generate GHc67 billion in 2020.
The Finance Minister, Ken Ofori-Atta, announced in Parliament on Wednesday during presentation of the 2020 budget statement.
According to him, a chunk of this target, some GH¢65.8 billion, will be from domestic revenue.
The government failed to meet its revenue target for this year. The total revenue and grants in the first half of 2019 reached GH¢22.77 billion, below the project target of GH¢26.96 billion, representing 15.5 per cent shortfall.
He further told parliamentarians that a complete review of Ghana’s structure will ensure that the government meets its 2020 revenue targets.
The government, meanwhile, hopes to spend GH¢85.9 billion in 2020, suggesting that it will spend GH¢18.8 billion more than the revenue it will generate next year.
The Finance Minister said the government is committed to providing support to the Ghana Revenue Authority (GRA) in its ongoing reforms for 2020 and the medium term to “optimise revenue collection.”
The government will pursue the following revenue measures, among others, to boost domestic revenue:
i. Government shall renew and extend the National Fiscal Stabilisation Levy and Special Import Levies (SIL) for five years to support the Budget
ii. In line with Government policy, the personal income tax band will be adjusted and the necessary parliamentary approval sought to ensure that the 12% minimum wage increase for 2020 is tax-exempt.
iii. Personal Reliefs such as marriage relief, child education relief and old age relief, which were last adjusted in 2015, will also be reviewed upwards, consistent with the government’s commitment to supporting families.
As part of efforts to address challenges of revenue mobilisation, the government would restructure the tax system and develop a comprehensive revenue policy and strategy, he disclosed.
“The Ghana Revenue Authority occupies a critical position in the economy and is responsible for approximately 70% of domestic revenues. After then years of integration, the government is ready to carry out the next generation of reforms in revenue administration,” he added.