The Institute of Economic Affairs (IEA) had advocated the widening of the country’s tax net and plugging of all revenue loopholes to enable the country to maximize revenue collection.
Ghana loses more than GH¢ 5 billion annually through tax exemptions alone.
Dr. John K. Kwakye, Director of Research at IEA, noted that while the country generated little as revenue, the government’s allocation of this revenue was poor and inefficient, saying little was spent on capital expenditure.
Ghana’s total expenditure, in 2021, is estimated at GHC114billion and this Dr. Kwakye noted was insufficient considering the plethora of projects and initiatives the government had to undertake.
Meanwhile, the Institute of Statistical, Social and Economic Research (ISSER) say the government needs to accelerate the domestic revenue mobilization effort to reduce borrowing to finance the fiscal gap.
Professor Peter Quartey, Head of ISSER, made this known when the Institute reviewed the Mid-year Review of the Budget Statement and Economic and Supplementary Estimates of the 2020 Financial Year in Accra.
He said if the government could raise the projected revenue above its programmed target and ensure that the expenditure envelop was intact, and then the economy could outperform the revised fiscal deficit of 9.4 percent for 2021.
Source: Mybrytfmonline/Kofi Atakora
