The Bank of Ghana’s Monetary Policy Report has revealed that total revenue and grants for the second quarter of 2024 amounted to GH¢74.65 billion, which is about 7.1% of GDP.
This figure fell short of the target of GH¢76.07 billion, or 7.2% of GDP, representing a 1.9% shortfall.
Despite missing the target, the revenue figure reflects a notable year-on-year growth of 24.6%.
Domestic revenue alone reached GH¢74.19 billion, which is slightly below the target of GH¢74.41 billion.
The report highlighted a mixed performance across various tax categories.
Tax revenue which includes taxes on income and property, domestic goods and services, and international trade (excluding oil and gas-related taxes), reached GH¢59.70 billion, or 5.7% of GDP.
This exceeded the target of GH¢59.30 billion, or 5.6% of GDP, by 0.7%.
Specifically, taxes on income and property, which encompass personal income tax (PAYE), company taxes (including those on oil), royalties from oil and minerals, and other direct taxes, totalled GH¢28.68 billion, or 2.7% of GDP.
This figure was 4.5% above the target of GH¢27.44 billion, or 2.6% of GDP.
According to the report, all the components exceeded their targets except “Personal taxes” and “Company taxes on oil”.
This was also higher than the GH¢23.73 billion collected in the corresponding period of 2023, reflecting a year-on-year growth of 20.8%.
Taxes on domestic goods and services (consisting of domestic VAT, excise duty, GET Fund Levy, National Health Insurance Levy, and Communication Service Tax) was GH¢25.97 billion (2.5% of GDP), below the target of GH¢28.30 billion.
On a year-on-year basis, the outturn represented a growth of 24.2%.
Non-tax revenue totalled GH¢11.27 billion, falling short of the target of GH¢11.66 billion by 3.4%. However, this amount represents a significant year-on-year increase of 36.5%.
The shortfall was primarily due to lower-than-expected lodgements, largely driven by underperformance in “Fees & Charges.”
Despite this, dividend payments helped partially offset the shortfall and contributed positively to the overall non-tax revenue.
“Other revenue” of GH¢2.54 billion failed to meet its target of GH¢2.99 billion, recording a negative deviation of 15.1%, but was above the total of GH¢2.44 billion collected in the corresponding period of 2023.
This reflected a year-on-year increase of 4.1%.
Grants
The grants received was GH¢457.3 million, significantly below GH¢1.65 billion programmed for the review period, thus falling below its target by 72.3%.