3.4 Fiscal system The government managed to stabilize the macro economic situation through a number of measures including fiscal containment. This invariably had negative implications for growth in the short term. Total revenue and grants for the year 2011 was GHC12,851.56 million (22.8 percent of GDP) and total government expenditure amounted to GHC13,379.98 million (23.8 percent of GDP). Consequently, the budget recorded an overall deficit including divestiture of GHC2,395.44 million (5.2 percent of GDP) at the end of the year. The deficit was financed by a net foreign inflow of GHC979.3 million (1.7 percent of GDP) and net domestic financing of GHC1,988.14 million (3.5 percent of GDP). 3.4.1 Revenue Mobilization The trends in government revenue as a percent of GDP indicate that there has been an appreciable increase in domestic revenue mobilization. The Ghana Country Review Report of 2005 recommended that the country devise innovative means to reduce its dependence on external sources of finance to support its annual budgets. a) Domestic Revenue Domestic revenue and grants increased from GHC8,810.86 million in 2010 to GHC12,851.56 million in 2011. Table 4.2: Total Revenue and Grants (in millions of Ghana Cedis) 2008 5,619.70 Total Revenue and Grants Tax revenue 4,368.50 Non-Tax 433.93 Revenue Grants 817.29 Others 69.02 Source: Bank of Ghana, 2012 2009 6,775.17 2010 8,810.86 2011 12,851.56 4,803.65 870.33 6,504.51 1,226.12 9,776.09 1,822.00 1,101.18 88.01 1,080.23 137.34 1,174.96 135.04 Sixth Annual APRM Progress Report: January – December 2011 51