Ghana’s 2025 Budget faces scrutiny from economic experts regarding revenue generation strategies. Eric Boachie Yiadom emphasized the need for effective implementation and private sector involvement, while Priscilla Twumasi Baffour criticized the shift of property tax collection back to district assemblies. Both experts highlighted significant gaps in revenue mobilization and called for strategic fiscal reforms.
Economic experts are offering insights into Ghana’s 2025 Budget, particularly concerning the government’s strategies to enhance revenue generation. Eric Boachie Yiadom, a development finance and economics expert, acknowledged the administration’s intentions to bolster income from the mining sector but expressed caution regarding effective implementation. In his presentation of the 2025 Budget Statement and Economic Policy to Parliament on March 11, Finance Minister Cassiel Ato Forson described the challenging financial circumstances faced by the new government and outlined various budgetary measures aimed at stabilizing the economy.
Boachie Yiadom elaborated on the potential for income generation from the mining sector, asserting, “Moving income from the mining sector and increasing it to that threshold will bring in revenue, but we must also consider the implications for sector activities.” He noted that while the government’s initiatives are laudable, the excessive reliance on central government funds is not sustainable. Instead, he recommended empowering the private sector to engage in essential infrastructure and development projects.
He stated, “Government cannot do everything. Until we find ways to support private businesses in areas like gas infrastructure and road construction, we will always be seeking more funds that will never be enough.” Yiadom highlighted the significant gap in tax revenue, mentioning the total expenditure of approximately GHC279 billion contrasted with a mere GHC150 billion in revenue. He urged a re-evaluation of the mechanisms for generating and managing state funds.
Priscilla Twumasi Baffour, a senior lecturer at the University of Ghana, raised concerns regarding the government’s decision to shift property tax collection back to district assemblies. She argued that property taxes represent a significant untapped resource and that previous centralization efforts should have been continued to increase efficiency. She expressed skepticism about the capability of local authorities to manage this responsibility effectively.
Baffour stated, “We have seen studies where automated, digitalized processes significantly increased tax collection. The concern is that without proper evaluation and enforcement, the inefficiencies will persist.” She also criticized the decision to remove certain tax measures, specifically the betting tax, advocating for its retention: “I think it was a revenue handle that should have been kept. If people are earning income from betting, they should be paying taxes on it.”
In summary, the discourse surrounding Ghana’s 2025 Budget reveals a range of economic concerns from experts. While the government’s intention to generate more revenue is recognized, significant implementation challenges persist, particularly regarding the mining sector and local tax collection. Experts advocate a more robust approach that includes private sector involvement and effective management strategies to address the evident revenue shortfalls and to harness available financial resources efficiently.
Original Source: www.asaaseradio.com
