Economic Experts Analyze Revenue Strategies in Ghana’s 2025 Budget

Ghana’s 2025 Budget faces scrutiny from economic experts regarding revenue strategies and financial challenges. Eric Boachie Yiadom emphasizes boosting mining sector income while cautioning about over-reliance on government funding. Priscilla Twumasi Baffour critiques the return of property tax collection to local assemblies and urges retention of certain tax handles.

In light of Ghana’s 2025 Budget announcement, economic experts have expressed varied opinions on revenue generation strategies and persistent economic challenges. Finance Minister Cassiel Ato Forson noted the dire financial situation inherited by the new government during the presentation to Parliament, emphasizing the budget’s focus on revenue mobilization and policy reforms aimed at stabilizing the economy.

Eric Boachie Yiadom, a development finance and economics expert, acknowledged government intentions to boost mining sector revenue but warned of potential adverse effects. He stated, “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.”

Yiadom underscored the unsustainability of relying solely on central government funding. He advocated for empowering the private sector for infrastructure projects, remarking, “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.”

Furthermore, he highlighted the staggering gap in tax mobilization, pointing out that last year’s total expenditure of GHC279 billion was met with merely GHC150 billion in revenue. He stressed the necessity of re-evaluating fund generation and management strategies due to such shortfalls.

Priscilla Twumasi Baffour, a senior lecturer at the University of Ghana, criticized the decision to return property tax collection to district assemblies. She asserted, “Property taxes are an untapped goldmine. Accra’s skyline is filled with high-value properties, yet revenue collection remains inefficient.”

Baffour raised concerns over local authorities’ capacity to manage such responsibilities effectively, citing previous successful attempts at centralizing tax processes. Additionally, she expressed her apprehension about the removal of certain tax handles, particularly the betting tax, arguing, “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.”

The discussions surrounding Ghana’s 2025 Budget suggest a critical need for effective revenue generation strategies and the role of the private sector in supporting economic recovery.

Economic analysts have underscored the importance of robust revenue generation strategies amid growing financial difficulties faced by Ghana. The 2025 Budget’s approach, which includes returning property tax collection to local assemblies and focusing on the mining sector, has sparked important debates on sustainability and empowerment of the private sector for infrastructure engagements. There is a consensus that reform in these areas is essential for effective economic management, especially in light of substantial revenue shortfalls.

Original Source: www.asaaseradio.com

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