As Finance Minister, Ken Ofori-Atta, prepares to present the Mid-Year Review and Supplementary Budget to Parliament on July 17, he has been urged to come up with new measures to raise revenues.
Former Finance Minister, Seth Terpker, says the government must admit that its revenue-generation policies are not working.
Speaking to Joy Business, Mr Terpker said the government must check its expenditure if it cannot raise the needed revenue.
“My thinking, in general, is that it is probably time to concede that the fiscal situation is tight and revenue measures are needed, and some of the policies that have been taken in the past require re-examination to protect whatever gains may have been made in the fiscal situation,” he said.
Per Ghana’s Public Financial Administration Act, the Finance Minister is required to present a Mid-Year Review to parliament six months after the presentation of the main budget for that fiscal year.
The Mid-Year fiscal policy review would give a brief overview of the macroeconomic development of government over the past six months and the rest of the year.
The presentation would also offer the Finance Minister an opportunity to review some of the macroeconomic targets that were outlined in the 2019 budget.
Mr Ofori-Atta has already indicated that one of the taxes that would be adjusted during the Mid-Year Review is the luxury tax on vehicles.
The tax was introduced last year to help improve revenue mobilisation.
The changes, the Finance Minister maintains has been influenced by some stakeholders’ concerns.
Mr Ofori-Atta told Joy Business the presentation of the Mid-Year Review would be used to also review some of the macroeconomic targets that were set out in the 2019 budget presented to parliament in November last year.
However, Mr Terkper wants the Finance Minister to paint the true fiscal situation to Ghanaians on July 17.
“We have raised issues with offsets, which means that contrary to the belief that payments were being made, its mere offsets and payments may be slower than what the positions in the budget and other statements are made to look like,” the former Finance Minister stated.