2022 Budget: Govt aims to grow domestic revenues by 44%

BY: Maxwell Akalaare Adombila

The government has unveiled an ambitious plan to grow domestic revenues by 44 per cent in 2022.

It aims to grow the amount mobilised locally from the projected GH¢70.3 billion, equivalent to 16 per cent of gross domestic product (GDP) in 2021, to GH¢99.5 billion in 2022, equivalent to 20 per cent of GDP.

The amount is part of plans to mobilise GH¢100.5 billion in total revenue and grants next year.

Presenting the 2022 Budget to Parliament on Wednesday, the Minister of Finance, Mr Ken Ofori-Atta, said the resource mobilisation for 2022 is underpinned by revenue policy initiatives.

“The increase in domestic revenue by 44 per cent is as a result of the impact of a major progressive tax policy, (“Baako P3”) complemented by improvements in tax compliance and reforms in revenue administration that we have outlined in this budget,” he said.

He mentioned a 1.75 per cent tax to be imposed on electronic transactions and a planned review fees and charges by ministries, departments and agencies (MDAs) as some of the avenues to be used to mobilise funds.