Ghana’s 2025 Budget faces scrutiny from economic experts who emphasize the need for effective revenue generation and fiscal strategies. While the Finance Minister outlines plans to increase mining revenues, concerns regarding reliance on central funding and inefficiencies in local tax collection have been raised. Experts argue for empowering the private sector and maintaining certain tax measures to enhance revenue mobilization.
Ghana’s 2025 Budget has raised significant discussions among economic experts concerning revenue generation and the country’s financial health. The Finance Minister, Cassiel Ato Forson, elucidated the dire economic challenges inherited by the new administration, emphasizing strategies for revenue mobilization and policy changes aimed at stabilizing the economy.
Eric Boachie Yiadom, an expert in development finance, acknowledged the government’s intentions to increase revenues from the mining sector but expressed concerns regarding the execution of these plans. He stated that although the plan could enhance revenue, there are implications for sector activities that need consideration, as the mining sector has historically contributed to economic growth.
Yiadom also indicated that relying heavily on central government funding is unsustainable, suggesting a shift towards empowering the private sector for key developments. He noted, “Government cannot do everything,” urging for an environment that facilitates business growth, particularly in infrastructure. The expert highlighted the significant shortfall in tax mobilization, revealing that last year’s expenditures exceeded revenues by a considerable margin.
In a critical examination of property tax collections, Priscilla Twumasi Baffour, a senior lecturer at the University of Ghana, criticized the return of property tax authority to district assemblies. She described property taxes as a valuable revenue source, stressing that the effectiveness of local authorities in managing this responsibility is questionable.
Moreover, Twumasi Baffour pointed out that without adequate automation and enforcement, collection inefficiencies are likely to persist. She also questioned the removal of various tax mechanisms, particularly the betting tax, arguing for the necessity of taxing all forms of income, including those from betting activities.
In conclusion, the ongoing discussions surrounding Ghana’s 2025 Budget reveal significant concerns regarding revenue generation and effective fiscal policy. Key insights from economic experts highlight the importance of empowering the private sector, addressing tax mobilization shortfalls, and the need for efficient local governance in tax collection. The effectiveness of implementing these budgetary strategies will be vital for stabilizing Ghana’s economy.
Original Source: www.asaaseradio.com
