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2022 Mid-Year Budget Review Highlights of the 2022 Mid-Year Budget Review

In the year ending June 2022, the temporary nominal debt stock is GHG 393,439.03 million, which is 78.3 percent of GDP. This is up from GH 351,787.02 million at the end of December 2020. foreign and domestic debt is 51.7% and 48.3% of the total debt. - The increase in debt stock is mainly due to covid-19, the war between Russia and Ukraine, inflation and exchange rate shocks, especially the sharp devaluation in Q1 2022. This exchange rate decline is due to a decline in government credit rating, as well as current corporate and energy sector demand pressure. - Due to the challenges faced during the year, the government decided to go to the International Monetary Organization (IMF) for support in the revised domestic program to overcome the balance of payments problem. After their first visit, the IMF team acknowledged that Ghana is in a difficult economic and social situation which has resulted in slow economic growth, delayed payment of outstanding bills, severe currency depreciation and growth.

Mid-2022 budget review highlights

Helping the government achieve its medium-term target of 20% tax to GDP by digitizing Value Added Tax (e-VAT) collection and reducing VAT collection gaps.

From October 1, 2022, importers who are not registered for value added tax will be subject to VAT. they import

To enable unregistered taxpayers to benefit from the interest-free and penalty extension program and to submit employment records of these taxpayers to the government.

Improve non-tax revenue collection by introducing end-to-end digitized system for property valuation. This is aimed at enabling the government to achieve a non-tax ratio of 4 percent of GDP in the medium term by increasing non-tax revenue collection activities.

reduce government tax expenditures through tax incentives; The much-anticipated Tax Incentive Act, pending presidential assent, will provide a more streamlined approach to tax incentive delivery and eliminate related administrative loopholes once enacted.

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Mid-Year Budget Review Russia Ukraine

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