Deloitte Ghana’s analysis of the 2024 Mid-Year Budget Review acknowledges that the government’s decision to maintain current tax levels offers some relief to businesses and individuals.
The audit and tax services firm cautions, however, that any additional tax increases could negatively affect private sector productivity, especially given the challenges of high inflation and currency depreciation.
The analysis underscores that 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, according to Deloitte, provides the fiscal space needed for the government to implement key programmes aimed at revitalizing and transforming the economy.
Furthermore, the Government of Ghana has projected an increase in capital expenditure from 2.5% of GDP in 2023 to 2.8% in 2024.
Deloitte interprets this forecast as a strong focus on improving social infrastructure and essential services, potentially driving robust economic performance in the medium to long term.
The firm also highlights that the reduction in total expenditure in the 2024 mid-year budget review largely results from savings on interest payments, which have decreased following the completion of external debt restructuring, including bilateral, multilateral, and Eurobond debts.