Government has indicated that the total revenue including grants for 2021 is projected to rise to GH¢72,452 million, equivalent to 16.7 percent of Gross Domestic Product (GDP), up from an outturn of GH¢55,132 million, equivalent to 14.
Out of the amount, domestic revenue is estimated at GH¢70,987 million, representing an annual growth of 31.7 per cent over the recorded outturn for 2020.
Minister of Parliamentary Affairs Mr Osei Kyei-Mensah-Bonsu, who presented the 2021 Budget Statement and Economic Policy of Government to Parliament on Friday, explained that the total domestic revenue and non-oil tax revenue will constitute about 74 percent, amounting to GH¢53,632 million.
This is equivalent to 12.4 percent of GDP, reflecting the impact of expected improvements in tax compliance and reforms in revenue administration.
The theme for the 2021 Budget was: “Consolidation, Completion and Continuation”.
It was also christened, “W0N YA WO HI33” Budget, to wit “we are moving forward”.
Mr Kyei-Mensah-Bonsu said government recognised that as a result of the impact of COVID-19, times were hard for many people, however, it was important that the Government rebuilt and strengthened public finances to provide the resources needed to protect lives and livelihoods, deliver critical government services, support the transformation of the economy, and ensure fiscal and debt sustainability.
“We have to do these ourselves as no one will do it for us,” he added.
He said rebuilding the country’s public finances required the implementation of some important fiscal measures to mobilise additional domestic revenue.
On tax administration, the Minister said in 2021 the Ghana Revenue Authority (GRA) will intensify audits and institute measures to recover all outstanding debts and enforce collections in the extractive industry.
He said a study of the downstream petroleum sector indicated there was still the challenge of under-reporting and evasion of taxes by some industry players.
The Minister said the GRA in conjunction with the relevant agencies would mount a campaign to deal with the unlawful acts.
On Gaming Policy, he said gaming had become a major income earner all across the globe and a significant source of government revenue.
Mr Kyei-Mensah-Bonsu said the influx of online betting and automation of the once totally manual process had changed the character of revenue sources from that industry.
“It is estimated that Ghana loses over GH¢300 million annually in revenue due to leakages in the sector,” he said.
Mr Kyei-Mensah-Bonsu said the ministries of Finance and the Interior would co-supervise the gaming industry and would soon consult with stakeholders to formulate a comprehensive policy to improve revenue mobilisation from that source.