Remittances, mostly from Ghanaians living abroad have become a very significant component of Ghana’s economy, as the amount of money remitted into the country every year continues to exceed the revenue the country generates from taxes and how much it receives in international aid.
While the Ghana Revenue Authority announced over GH¢183 million as the tax revenue collected in 2016, the total value of remittances into Ghana in the same year, amounted to GH¢8.7 billion or a little over $2 billion, the Bank of Ghana data made available to ghanabusinessnews.com shows.
The total of both revenue and grants amounted GH¢33.7 billion or 20 per cent of GDP, according to the central bank.
The website, Financial Tracking Service, which tracks international aid, indicates that the total funding made available to Ghana in 2016 was $697,992.
This has been the trend for some time now. Ghanaians abroad are building and sustaining the economy by sending money home to relatives to cater for the sick, pay for education, acquire landed property and feed households. For instance in 2009, remittances from Ghanaians abroad outstripped ODA.
By Emmanuel K. Dogbevi
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