There are mixed expectations ahead of the 2018 mid-term budget review later this morning as the Finance Minister Ken Ofori Atta will be reviewing the 2018 budget statement presented to parliament.
He is expected to set fresh revenue targets and announce new expenditure plans.
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But ahead of that, A Senior Lecturer of Economics at the University of Ghana, Legon Dr Ebo Turkson is expecting the Finance Minister to increase income tax from 25% to 28%.
According to him, the budget for the free SHS is draining government purse, making it difficult for government to continue with other projects set before her.
Speaking last night on Burning Issues, Dr Turkson says the best way to raise the fund for the free SHS policy is to increase the income tax of the formal sector.
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He also suggested that the free SHS be given to the less-privileged and allow those who can afford to pay their wards’ fees to do so.
Mr Turkson believes the government can raise money to expand infrastructure for quality free SHS education if it allows parents who can afford to pay their children’s fees to do so.
He said, last year, the government spent close to 200 million, with a majority of such expenditure going into free SHS whilst infrastructure is left unkempt, making a number of students stranded.
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Dr Ebo Turkson has advised the government to find ways of blocking loopholes in revenue mobilization and be efficient with public expenditure.
He says the best way out will be to increase income taxes in the formal sector because it is the only way government will be able to raise more money to explore the productive base in Ghana’s economy.