A report compiled by ILAPI in 2022 has disclosed that on the average, Government of Ghana wastes GH¢0.70 out of every GH¢1.00 received as revenue, representing 70 per cent of every GH¢1.00 of the taxpayers’ contribution.
The Institute for Liberty and Policy Innovation (ILAPI) is a Tema-based think tank with expertise in Free Enterprise Public Policy Research.
Contained in its ‘2022 Poll and Data Analysis’, ILAPI said 92 per cent of Ghanaians were of the view that the government wasted their taxes, with 90.5 per cent of Ghanaians expressing their lost of trust in the government due to corruption, lack of accountability and transparency in the implementation and execution of policies and programmes.
Government wasteful spending refers to the inefficient allocation of resources by state entities, resulting in unnecessary costs and financial loss.
This issue, to ILAPI, poses significant challenges to the sustainability of public finances, hindering economic growth and diminishing public trust in government’s ability to manage taxpayer funds effectively.
The ILAPI-conducted perception representative poll which had 2,000 respondents across the country was conducted using a digital/online platform, including the ILAPI website, Facebook page, Instagram, Twitter and WhatsApp.
Volunteers across Ghana’s 16 regions were also engaged to assist in the poll.
ILAPI said the poll was a convenient online survey which utilised random sampling within four months. It said the sampling methods gave every respondent, who is a Ghanaian, an easy and equal chance of being part of the study within the period.
One key factor that contributed to the wastage of public funds, according to the ILAPI August-November ‘2022 Poll and Data Analysis was the lack of transparent and accountable procurement processes, which includes inefficient bidding systems, inadequate oversight mechanisms and instances of corruption, leading to inflated contract prices.
Another contributing factor, it mentioned, was the presence of redundant or obsolete government programmes and agencies which often duplicate functions, resulting in inefficient resource allocation and unnecessary administrative costs, insufficient evaluation of project feasibility, unrealistic cost estimates and poor monitoring of expenditures, often amounting to cost overruns and improper allocation of resources.
Further major factors discovered through the Representative Perception Polls included Presidential travels, the National Cathedral project, the abandoning of state projects like the Saglemi Housing units, government size, youth employment programmes, the Banking sector Clean-up Exercise and the fight against Galamsey.
To mitigate wasteful spending and gain citizens’ trust, the Report, whose Conceptual Review, Definition and Methodology were prepared by ILAPI’s Executive Director, Peter Bismark Kwofie, Poll and Data Analysis conducted by Stephen Dansu and with a public policy contribution made by Dr Mohammed Jamal of the Koforidua Technical University, suggested the strengthening of budgetary processes and introducing effective oversight mechanisms in promoting a culture of fiscal responsibility within the government financial architectures.
It went on to suggest fiscal covenant responsibility laws and rules, which would regulate government spending to enhance transparency and accountability.
Additionally, ILAPI suggested that a comprehensive review of government programmes to identify redundancies and inefficiencies. It explained that eliminating or merging redundant entities or institutions can result in cost savings and improved service delivery.
Besides, it said the implementation of robust monitoring systems, promoting competitive bidding and imposing strict penalties for fraudulent practices would help save the taxpayers’ contributions.
Above all, the ILAPI Report was of the view that fostering citizens’ engagement and participation in scrutinising government expenditures could play a significant role in curbing the government’s wasteful spending.
