Business News of 2014-07-07

Gov't to outline measures to address revenue shortfalls

The Finance Minister Seth Terkper is likely to outline new measures to address revenue mobilization challenges currently facing the country when he presents the mid-year review of the 2014 budget.

The review could see government revise its marco economic targets set out for this year's budget and some new policies to stabilize the economy. The current economic difficulties facing the country have affected efforts to raise the required revenue to match government's operations.

The country for first three months of this year failed to collect the GH?5.7 billion revenue target set out in the 2014 budget. This challenge has been influenced by declining prices of Ghana’s traditional export commodities like Gold and cocoa and cut in donor funding because of the country's middle income status.

Donor partners have also withheld their support due to concerns with the management of the economy. Ghana Revenue Authority has had difficulties in meeting targets set for the various tax types because of recent energy crises that hit the country.

A source close to the Authority told Joy Business that the recent tax hikes has further cast shadows in efforts to improve revenue mobilized from businesses. Analyst see the review, which is expected before the end of this month, as one of the major interventions by government to help stabilize the economy.

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