The government’s decision to maintain current tax levels in the 2024 Mid-Year Budget Review offers much-needed relief to businesses and individuals, according to an analysis by Deloitte Ghana.
The firm noted that additional tax hikes could have further strained the private sector’s productivity, especially given the already challenging business environment marked by high inflation and currency depreciation.
Deloitte highlighted that the ongoing debt restructuring and the International Monetary Fund (IMF) programme have significantly reduced the country’s interest payments—from GH₵55.9 billion, previously the largest expenditure item, to GH₵48.0 billion, now the second-largest. This reduction is expected to create fiscal space for the government to implement key programmes aimed at revitalising and transforming the economy.
The Government of Ghana projects an increase in capital expenditure from 2.5% of Gross Domestic Product (GDP) in 2023 to 2.8% of GDP in 2024. Deloitte emphasized that this forecast underscores a strong focus on improving social infrastructure and essential amenities amid the fiscal consolidation programme. “Allocating such spending to priority sectors can drive robust economic performance in the medium to long term,” Deloitte noted.
Furthermore, the reduction in total expenditure in the 2024 mid-year budget review is expected to result from savings on interest payments, which have decreased due to the completion of external debt restructuring, covering bilateral, multilateral, and Eurobond debts.
