Deloitte Ghana has praised the government for maintaining existing taxes in its Mid-Year Budget Review.
Deloitte said keeping the taxes in the review offered some relief for businesses and individuals because a further increment could affect the private sector’s productivity.
The professional services firm noted that the business environment was already experiencing relatively high inflation and exchange rate depreciation.
The debt restructuring together with the International Monetary Fund programme has reduced the country’s interest payment.
That, according to Deloitte, should create the needed fiscal space to implement key government programmes to revamp and transform the economy.
The government has projected an increase in capital expenditure investments from 2.5% of Gross Domestic Product in 2023 to 2.8% of GDP this year.
Deloitte said the forecast pointed to a strong focus to improve social infrastructure and other key amenities amidst the fiscal consolidation programme, adding, “Allocation of such spending to priority sectors can spur strong economic performance in the medium to long term.”
Government, in its review, revised total Revenue & Grants for this year upward to GH¢177.2 billion compared to the 2024 budgeted of GH¢176.4 billion, representing a 0.5% increase.
Total Expenditure for 2024 was also revised downward to GH¢219.7 billion compared to the 2024 budget of GH¢226.7 billion, a 3.2% decrease.
Deloitte added that the decline in total expenditure, was expected to result from savings on interest payment from GH¢55.9 billion to GH¢48.0 billion, owing to government’s completion of external debt restructuring (in respect of bilateral, multilateral and Eurobond debts).
By Samuel Boadi