Ghana’s 2025 Budget faces scrutiny from economic experts regarding revenue gaps and sustainability. Expert Eric Boachie Yiadom raised concerns about reliance on government funding and the need for private sector empowerment. Criticisms also emerged over the management of property taxes, which local authorities may struggle to handle effectively. The discussions highlight an urgent need for better fiscal policies and revenue generation strategies.
Economic specialists have scrutinized Ghana’s 2025 Budget, particularly focusing on projected revenue gaps and economic concerns resulting from historical challenges. Eric Boachie Yiadom, an expert in development finance, acknowledged the government’s intent to enhance revenue through the mining sector, while expressing reservations regarding its practical implementation.
During the presentation of the budget on March 11, Finance Minister Cassiel Ato Forson highlighted the significant financial difficulties inherited by the current administration. The budget put forth various strategies for revenue mobilization, spending initiatives, and policy adjustments aimed at stabilizing Ghana’s economy.
On the Asaase Breakfast Show, Mr. Yiadom elaborated on the implications of the fiscal policy, stating that increasing mining sector revenue must be balanced against its impact on sector operations. He noted the past success of the mining industry in contributing to economic growth but underscored that reliance on government funding is unsustainable.
He articulated the necessity for empowering the private sector to manage infrastructure projects and stimulate economic development. 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.”
Furthermore, Mr. Yiadom raised concerns over tax mobilization shortfalls, indicating the previous year’s expenditure was approximately GHC279 billion while revenues reached only GHC150 billion. “We need to rethink how we generate and manage funds,” he emphasized.
Priscilla Twumasi Baffour, a senior lecturer in economics, offered her critique of the government’s reversal of the property tax collection to local district assemblies, citing potential inefficiencies. She remarked, “Property taxes are an untapped goldmine. Accra’s skyline is filled with high-value properties, yet revenue collection remains inefficient.”
Twumasi Baffour expressed skepticism regarding the local authorities’ ability to manage this responsibility effectively. She referred to studies demonstrating that automated processes substantially enhance tax collection efficiency and warned that without adequate evaluation, persistent inefficiencies could arise. Additionally, she criticized the removal of some tax provisions, particularly concerning the betting tax, stating, “If people are earning income from betting, they should be paying taxes on it.”
The conversations surrounding Ghana’s 2025 Budget underscore the urgent need for strategic evaluations of revenue generation and management, alongside fostering private sector participation to bolster economic stability.
In summary, economic experts have highlighted pressing concerns regarding Ghana’s 2025 Budget, particularly its reliance on government revenues and the inefficiencies in taxation systems. While the government’s focus on the mining sector’s revenue potential is noted, experts advocate for greater empowerment of the private sector in infrastructure development. Furthermore, critiques of property tax management suggest a need for more efficient revenue collection methods. The discourse emphasizes a strategic reassessment of fiscal policies as vital for stabilizing the economy.
Original Source: www.asaaseradio.com
