2022 Mid-Year Budget Review; 10 Expectations

The 2022 budget was themed ‘Building a Sustainable Entrepreneurial Nation: Fiscal Consolidation and Job Creation’. It is expected to consolidate the macroeconomic gains achieved post Covid-19 and address the economy’s short to medium-term risks.

1. On revenue, the government projected to raise GH¢ 100.5 billion in total revenue and grants in 2022. I expect an update on how revenue has performed in the first half of the year.
2. The government envisages increasing total revenue as a percentage of GDP from 16% in 2021 to 20% in 2022. Is government on the right path?
3. More importantly, how has E-Levy performed. Will government review the E-Levy? Will government lower the rate further from the current 1.5%?
4. On benchmark values, will government scrap entirely the policy?
5. On expenditure, the government expects to spend GH¢ 137.5 billion, including arrears, in 2022 compared to GH¢ 113.7 billion in 2021. Is government on course?
6. Government should give an update on how much savings it has made since introducing expenditure cuts in March, 2022. Some of the measures were; reducing fuel coupons to officials, ban on foreign travels etc. I don’t expect the minister to request for a supplementary estimate.
7. I don’t expect an introduction of a new tax. I expect government to implement tax compliance measures. Also, I expect an update on the Tax Exemption Bill which is in parliament.
8. On, property rate, what is the update on the unified platform for collection of property rates?
9. What is the update on the review of the various flagship programmes of the government? There have been calls for a policy review of the Free Senior High School Programme. What measures will government put in place to make the policy sustainable should it remain free?
10. What was the outcome of the data fact finding mission from the IMF? How soon does government expect to secure a deal from the Fund?

Emmanuel Amoah-Darkwah

Economist/ Partner @C-KADD GLOBAL

[email protected]