Ghana unveils ambitious Medium-Term Revenue Strategy to revitalise economy
In a bid to overcome the economic challenges bedevilling the nation, Ghana has announced its foremost Medium-Term Revenue Strategy (MTRS) for the years 2024 to 2027.
The MTRS is set to become the cornerstone of Ghana’s economic transformation efforts, aiming to restore macroeconomic stability, debt sustainability, and promote inclusive and sustainable growth.
This strategic plan aligns with several national and international development frameworks, including the Coordinated Programme of Economic and Social Development Policies (2021-2025), the Ghana Beyond Aid agenda Charter & Strategy, and the Ghana National Revenue Policy (GNRP).
It also dovetails with Ghana’s Public Financial Management reform and the Post-COVID-19 Programme for Economic Growth (PC-PEG), all of which are committed to achieving the United Nations’ Sustainable Development Goals (SDGs) Agenda 2030, the African Union Agenda 2063, and the ECOWAS Vision 2050.
The PC-PEG is primarily focused on restoring macroeconomic stability and debt sustainability, and it emphasizes holistic reforms in public service delivery and public financial management.
A central component of this strategy is the overhaul of the revenue system to increase tax and non-tax revenues to support inclusive and sustainable growth.
The MTRS serves as the blueprint for these reforms, providing predictability and direction for future revenue policies. It outlines a comprehensive approach with the goal of raising the tax-to-GDP ratio to 20% and the non-tax-to-GDP ratio to 4%.
The MTRS consists of a total of 113 policies and administrative actions across various thematic areas.
It encompasses a multifaceted approach to drive revenue reform in Ghana, with a total of 60 policy reforms distributed across various thematic areas.
These encompass a range of tax-related concerns, including direct and indirect taxes, international trade taxes, domestic productive capacity, international taxation, tax expenditure, incentives, and more. Additionally, the strategy includes initiatives related to extractive industries, environmental fiscal reform, non-tax revenue, revenue administration, and digitalization.
Moreover, the MTRS introduces 53 administrative reforms spanning tax policy, non-tax revenue, customs revenue, domestic tax revenue, and IT and other support services.
This comprehensive framework aims to enhance revenue mobilization, foster economic growth, and ensure fiscal sustainability for Ghana in the coming years.
The MTRS will necessitate a comprehensive review and consolidation of existing legislation, modernizing laws and incorporating new provisions emerging from the strategy. This legislative review will streamline and enhance the country’s fiscal framework.
To implement the MTRS effectively, it will be integrated into the medium-term strategic plans and annual work plans of the Ministry of Finance and the Ghana Revenue Authority, with collaboration expected from key Ministries, Departments, and Agencies.
Furthermore, the government aims to cooperate closely with development partners, recognizing the importance of external capacity development support for the successful implementation of the strategy.
The first year of implementation will be closely monitored, and a review is planned for early 2025 to assess progress and identify any necessary mitigation strategies.
Ghana’s Medium-Term Revenue Strategy represents a comprehensive and forward-looking approach to revitalizing the nation’s economy and steering it towards sustained growth and stability in the post-pandemic era.
Source: Ghana News
