Silence on taxation in the mid-year budget worrying-Expert
The Director of Strategy and Business Operations at Dalex Finance, Joe Jackson, has expressed disappointment in the government for failing to highlight on taxation in the mid-year budget review presented last week.
Speaking to Kwabena Agyapong on Rainbow Radio 87.5Fm, the finance expert described the situation as worrying.
According to him, considering the huge drop in the government’s revenue as businesses struggle; it would have been prudent for the government to announce some steps to boost domestic revenue collection.
Meanwhile, he has predicted that the target growth rate of 0.59% he opined would be impossible and will only take a miracle for that to happen.
The Ministry of Finance had earlier projected gross domestic product (GDP) growth to slump from a budget target of 6.8 to 1.5 per cent or 0.59 percent.
But Mr. Joe Jackson says Ghana would still fall into the categories of the fastest growing economies should we achieve that target.
On expenditures, he said the pandemic had brought with it new spending pressures as the government aimed to contain its spread to mitigate the impact on lives and the economy.
Finance Minsiter Ken Ofori-Atta says the negative impact of the virus has led to a revenue shortfall of GH¢13.6 billion, a situation he noted was unexpected.
He said the country had necessary expenditures of approximately GH¢11.7 billion.
He said the country’s total expenditures (including arrears clearance) amounted to GH¢46,352 million or 12.0 percent of GDP, compared with the programme target of GH¢41,554 million or 10.8 percent of GDP.