According to Fitch, the possibility of new revenue measures could lead to a further shrinkage of deficit in 2023, but the government's slim majority in parliament could frustrate attempts to raise tax rates or implement new taxes.
The downgrade reflects deterioration of Ghana's public finances, which has contributed to a prolonged lack of access to Eurobond markets, in turn leading to a significant decline in external liquidity.
Prices of goods and services have shot up by a thousand percentage (100%) with fuel products being the most hit in record time in the country.
the new E-VAT, the government seeks to raise GH¢750 million if the Value Added Tax Amendment bill, which introduces the E-Vat policy, is passed by parliament.
the revision of the end-period inflation for 2022, as part of the re-jigging of the entire macroeconomic framework, has been necessitated by a significantly-changed macroeconomic environment.
Ghana’s economy showed signs of serious challenges even before COVID-19 struck. The World Bank’s country director has been emphatic that our economic challenges persisted even before the COVID-19 crises.
Notwithstanding the significant improvement in the trade surplus, the current account deficit widened to US$1.1 billion, compared with US$762.0 million recorded in the same period of 2021.
The local currency has depreciated by about 18.89% to the dollar on the interbank market and 26% on the retail market.
The country’s total revenue will end 2022 at ¢89.0 billion, far below the target of ¢100.5 billion, the July 2022 Africa Monitor Report by Fitch Solutions has revealed.
The figure means that the Month-on-month inflation between May 2022 and June 2022 stood at 3.0 percent.