Entitled, ‘Fiscal policy for financing sustainable development in Africa, the 2019 Economic Report on Africa has indicated that African government’s intervention in five key areas can boost revenue of governments from 12% to 20% of their Gross Domestic Product (GDP). While taxing hard to reach sectors can also increase revenue of a government by 4.6% of its GDP. Indicating that 60% of Africa governments’ tax revenue is coming from indirect taxes, the report suggested expansion of tax collection from the people in the informal sector. The report also finds that countries that adopt a countercyclical fiscal policy that could increase government revenue by 5% of GDP. That includes taking business cycles into account I implementing fiscal policy to avoid the adverse impacts for macroeconomic stability that come with ignoring the business cycle.

Source: News Business Ethiopia March 24, 2019 10:07 UTC