Policymakers and academics have emphasized the urgent need for the government to adopt sustainable revenue collection measures, effectively manage debt, and enhance monetary policy to address the nation’s economic challenges.
Dr. Nii Kwaku Sowa, Country Director of the International Growth Centre (IGC-Ghana), underscored the importance of improving revenue collection efficiency without imposing additional taxes.
He highlighted the burden that numerous taxes and levies place on businesses, advocating for a streamlined approach to taxation.
“If you ask me to give you a hint as to what can be done about revenue, I will say improve the efficiency of collection of the revenue. Don’t add one single tax more; it becomes a burden to the Ghanaian. There are too many taxes in this system. If you have a business permit, they’ll collect another business permit from you. Too many taxes and levies are killing our businesses, and we should not introduce a new one,” Dr. Sowa stated.
Professor William Baah-Boateng, Head of the Department of Economics at the University of Ghana, led the discussion on fiscal policy.
He pointed to a lack of political will as a significant factor behind the country’s economic crisis and called for a commitment to prudent expenditure management rather than mere cuts.
“In Ghana, the government is too heavy on the system. Maybe I can put it this way; politics is too heavy on the economy,” Professor Baah-Boateng observed.
Discussing debt sustainability, Professor Peter Quartey, Director of ISSER, stressed the importance of responsible borrowing and debt management.
He emphasized the need to consider multiple economic indicators, including export revenue growth compared to interest rates, to ensure sustainable debt levels.
“I think the issue of debt healing is very crucial. Just like Prof. Ackah said, we don’t have one indicator; we have several of them. We have to look at them, look at our economy. We haven’t used export GDP; we have used growth in export revenue compared to your interest rate. If your export revenue is growing by 2% or 3% and your interest rate is 10%, then it tells you, you are going to have issues, and we have to borrow responsibly,” Professor Quartey explained.
During the monetary policy discussion, panelists addressed the role of monetary policy in maintaining macroeconomic stability. They highlighted the need for a balanced approach to ensure long-term economic health.
Delivering the keynote address, Abena Osei-Asare, Minister of State at the Finance Ministry, reaffirmed the government’s commitment to restoring macroeconomic stability.
She outlined the government’s plans to implement stringent fiscal policies, manage public debt sustainably, and enhance transparency and accountability in public finance management.
“We are committed to implementing stringent fiscal policies to reduce deficits and manage the public debts sustainably. We are also committed to transparency in public finance management, fully implementing the PFM Act and enhancing accountability mechanisms to ensure the efficient and effective use of public funds,” Osei-Asare stated.