“Revenues constitute the lifeblood of all economies. They not only finance development projects and the recurrent costs arising from such projects, but also pay for statutory expenditures such as debt servicing. Maximizing revenues however, requires a good idea of the revenue generating potential of the economy. Without a good idea of the quantum of revenue that can be generated within an economy, revenue targets will either understate or overstate the true revenue potential of the economy. Indeed, estimates of the revenue potential of a country tend to be even more problematic when it is characterized by a large informal sector, unstable macro-economic conditions and poor forecasting capacities. This study examines the revenue target setting process in Ghana and makes recommendations to policy makers.”
