Ghana’s 2025 Budget faces scrutiny from economic experts over revenue gaps and sustainability concerns. Experts like Eric Boachie Yiadom emphasize the need for effective mining revenue strategies and private sector empowerment. Critiques also focus on property tax collection decisions and the removal of certain taxes, highlighting potential inefficiencies in generating revenue.
Economic experts are evaluating Ghana’s 2025 Budget, especially focusing on revenue gaps and broader economic concerns. Eric Boachie Yiadom, a development finance and economics expert, noted the government’s goal to enhance revenue from the mining sector but cautioned about effective implementation. Finance Minister Cassiel Ato Forson presented the budget, which aims to tackle the economic difficulties faced by the new administration, noting that Ghana’s financial situation is dire and requires strategic responses.
The budget, discussed in Parliament, includes revenue mobilisation strategies and policy shifts intended to stabilize the economy. Yiadom pointed out that increasing income from mining could generate significant revenue but warned about the potential impacts on sector dynamics. Despite the government’s commendable revenue-raising efforts, Yiadom emphasized that reliance on central government funding is unsustainable, advocating for private sector empowerment in key infrastructure projects.
“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. The role of government should be to facilitate and create an enabling environment for businesses to thrive,” Yiadom added. He highlighted significant tax mobilisation shortfalls, indicating a total expenditure of approximately GHC279 billion with revenue of only GHC150 billion last year, prompting a reconsideration of fund management strategies.
Senior lecturer Priscilla Twumasi Baffour critiqued the decision to return property tax collection to local district assemblies, identifying it as a missed opportunity to tap into an underutilized revenue source. She remarked that despite Accra’s high-value properties, revenue collection is inefficient. Twumasi Baffour raised concerns about local authorities’ capacities to manage this responsibility effectively, stating, “We have seen studies where automated, digitalised processes significantly increased tax collection. The concern is that without proper evaluation and enforcement, the inefficiencies will persist.”
Additionally, she criticized the removal of certain tax handles, such as the betting tax, arguing that it is essential for maintaining tax revenue. “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,” she said.
The evaluation of Ghana’s 2025 Budget reveals considerable concerns regarding revenue generation and taxation efficiency. Economic experts emphasize the need for effective implementation of mining revenue strategies, the unsustainable nature of centralized funding, and the importance of empowering the private sector for infrastructure development. Moreover, critiques surrounding the management of property tax collection highlight the risk of missed revenue opportunities, calling for more strategic fiscal policies to ensure financial stability.
Original Source: www.asaaseradio.com
