Minister of Finance, Ken Ofori-Atta, has revealed that the country’s Gross Domestic Product (GDP) is poised to surpass the historic GH¢1 trillion (US$85 billion) mark in 2024.
This projection represents a remarkable 24.86 percent increase over the GH¢801 billion anticipated for 2023 and nearly quadruples the nominal value recorded in 2016 at GH¢219.5 billion.
The announcement was made during the presentation of the macroeconomic targets for the upcoming fiscal year, aligning with the objectives of the three-year IMF-supported Post COVID-19 for Economic Growth (PC-PEG) program.
The 2024 budget emphasizes a primary balance on commitment basis at a surplus of 0.5 percent of GDP, with a focus on sustaining economic growth and fiscal responsibility.
The Finance Minister also outlined key revenue and relief measures aimed at bolstering economic growth. Total revenue, including grants, is projected at GH¢176.4 billion, constituting 16.8 percent of GDP.
Among the measures is the emphasis on property taxes under the Property Rate Reform Project, resulting in a significant surge in billable properties.
Relief initiatives include the extension of zero-rate Value Added Tax (VAT) on locally manufactured African prints, import duty waivers on electric vehicles for public transportation, and a zero-rate VAT on locally produced sanitary pads.
The government also aims to address environmental concerns by expanding the Environmental Excise Duty to cover plastic packaging, industrial emissions, and vehicle emissions.
proposals for streamlined tax administration and the introduction of a simplified tax return aim to encourage voluntary compliance, marking a comprehensive strategy for sustainable economic development.