Ghana’s economy appears to be recovering from the severe economic crisis that peaked in 2022, characterised by soaring inflation, a sharp depreciation of the cedi, mounting public debt and default on external debt obligations.
The crisis forced the country to seek assistance from the International Monetary Fund (IMF) and undertook a debt restructuring programme.
Although economic indicators have improved, with inflation easing and greater macroeconomic stability, the benefits are yet to translate into sufficient relief for ordinary Ghanaians.
The cost of living remains high and households and businesses continue to struggle with their purchasing power.
It is against this background that the 2027 National Budget assumes particular importance. One critical issue the government must address is Ghana’s ability to mobilise sufficient domestic revenue to finance its development agenda without excessive reliance on borrowing.
For far too long, the country has struggled to generate enough internal resources to meet its expenditure obligations.
This situation cannot continue indefinitely. A country aspiring to economic independence must be capable of financing a substantial proportion of its development needs from its own resources.
We expect the Finance Minister, Dr Cassiel Ato Forson, to present a credible strategy for strengthening revenue mobilisation.
However, this must not translate into imposing additional taxes on individuals and businesses already struggling to meet their obligations.
The Chronicle believes that the solution lies in broadening the tax base, improving compliance and plugging revenue leakages rather than continually taxing the same people.
The informal sector presents an important opportunity. Despite its substantial contribution to economic activity, many businesses and operators remain outside the formal tax system. Government must find practical ways of bringing them into the tax net through simplified registration, effective tax education and fair taxation.
Small-scale traders, artisans and micro-businesses must not be subjected to arbitrary levies that could undermine their livelihoods.
Government must also confront revenue leakages, particularly at the country’s ports. Under-invoicing, smuggling, weak customs controls and administrative deficiencies deprive the state of revenue that should legitimately accrue to the national purse.
The Ghana Revenue Authority (GRA) must strengthen its monitoring and enforcement mechanisms. Technology should be deployed more effectively in customs administration, cargo inspection and tax collection.
However, technological improvements must be accompanied by institutional accountability and firm action against corruption and deliberate evasion of revenue regulations.
We also caution against equating increased taxation with improved revenue mobilisation. Businesses already contend with high operating costs, including credit, utilities and transportation. Additional tax measures must be carefully considered to avoid discouraging investment, weakening businesses and undermining employment creation. Government must recognise that thriving businesses create jobs and ultimately contribute more to the tax base.
Equally important is accountability for public expenditure. Ghanaians cannot continually be asked to pay taxes while public resources are lost through wasteful spending, abandoned projects and procurement irregularities. Every cedi collected must be accounted for and utilised prudently.
There must also be a visible relationship between taxes paid and public services delivered. Improved roads, adequately equipped hospitals, better schools, reliable water supply and efficient public services are among the benefits citizens rightly expect in return for their tax contributions.
As Dr Forson prepares to present the 2027 Budget, we expect concrete measures to strengthen the GRA, eliminate revenue leakages, improve tax administration and expand the country’s revenue base. Government must also demonstrate the fiscal discipline necessary to ensure that additional revenue translates into meaningful development.
Ghana cannot continue to finance its ambitions through excessive borrowing while neglecting opportunities within its own economy. Domestic revenue mobilisation must become a national priority, underpinned by fairness, transparency and accountability.
The Chronicle insists that the answer to Ghana’s revenue challenges is not simply to tax citizens more, but to collect what is legitimately due, plug the leakages and account for every cedi.
The 2027 Budget must demonstrate that the government understands this responsibility.
For more news, join The Chronicle Newspaper channel on WhatsApp: https://whatsapp.com/channel/0029VbBSs55E50UqNPvSOm2z
