Analyses by C-NERGY Ghana Ltd, an investment and banking services advisory firm, have shown that government can achieve its macroeconomic targets for 2018 if proactive measures are taken to shore up revenue.
According to the analysis, the GDP growth of 6.2 percent outlined in the 2018 budget is “achievable and could be improved particularly through aggressive infrastructure development”.
The publication also notes that the government’s investment and focus on agriculture could provide an impetus for growth, considering that agriculture still accounts for a substantial portion of GDP.
However, it noted that one of government’s major challenges in 2017 was revenue mobilization, hence, it will require further intensification of tax compliance measures this year.
It further suggests that to achieve the revenue target for 2018, government will need to be proactive in implementing additional short-term measures that will ensure tax compliance and revenue collection from the current taxpayer pool, particularly from the informal sector; and leverage mobile payment technology to efficiently boost revenue collection in the informal sector.
As investor confidence continues to soar in the country, the publication by C-NERGY Ghana, argues that government should capitalise on it and form Public Private Partnerships (PPP) to finance projects such as the Gas Master Plan, roads, housing and sanitation projects.
In light of these PPP arrangements, the publication suggests collection of property rates should also be outsourced to the private sector, which has the resources and motivation to make the needed investments in technology to boost tax collection.
Green Views is confident that government policies set out in the 2018 budget will also promote the growth of the real estate sector in the country, as it prepares to sell out its ultramodern apartments located at Airport City in Accra.