A lecturer of Finance and Economics at the University of Ghana, Dr Patrick Asuming, has advised the government to focus on improving the economy rather than taxing the already overburdened populace.
According to him, it is easier to collect taxes from the population when the economy is performing better.
Speaking on JoyNews’ The Pulse, he explained that until measures are put in place to grow the economy, the country will never be able to completely pay off its debt.
“The economy is not growing and ultimately we have to find means to increase our revenue collection and also the government has to look at its own finances but when it comes to revenue generation it is much easier for the government to collect additional revenue when the economy is growing than when it is not.
“In the last three years or so, the economy has not been growing very well, so any attempt to bring new taxes will be a problem,” he told host, Elton Brobbey on June 12.
He also advised the government to consider reducing its size, as it would lessen the tax burden on the taxpayers.
The Government announced a significant milestone in its debt restructuring journey, having reached an agreement on a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC).
This is concerning the debt treatment agreed upon in January 2024. The OCC, co-chaired by China and France, played pivotal roles in achieving this milestone.
The MoU formalises the agreement in principle reached with Official Creditors in January and marks a crucial step towards restoring Ghana’s long-term debt sustainability.
“The financial terms of the agreement remain unchanged, providing significant debt service relief during the Fund-supported program period,” stated the Finance Minister, Dr Mohammed Amin Adam.
This relief will allow financial resources to be redirected towards critical areas such as infrastructure, healthcare, and education.
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