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Prof. Lord Mensah Advocates Commercialising Government Expenditure to Enhance Revenue Generation

9 months ago
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Prof. Lord Mensah Advocates Commercialising Government Expenditure to Enhance Revenue Generation

Financial Economist with the University of Ghana Business School (UGBS), Prof. Lord Mensah, has urged the government to adopt a commercial approach to public expenditure, emphasizing the need for each penny spent to generate revenue for the nation either immediately or in the future.

Speaking during the NorvanReports and Economic Governance Platform X Space discussion on the theme, “Fiscal Sustainability Amid Tax Cuts and Manifesto Promises,” Prof. Mensah stressed that aligning government spending with revenue generation would ensure the country benefits from its limited resources.

“We need to commercialise government expenditure to ensure that at least every single penny that we spend, we will be able to generate something for the country in the future if not now.

“If we go this way, we should be able to keep the tax reliefs promised by the incoming administration. And then also we can be able to benefit from the little we have as far as government spending is concerned,” noted Prof. Mensah.

Prof. Mensah speaking further critiqued the outgoing administration’s focus on revenue generation at the expense of rationalising public expenditure.

“Over the past three years, especially under the IMF program, there has been an overemphasis on revenue generation instead of addressing inefficiencies in expenditure. For instance, a lean government as promised by the incoming government, could help reduce spending, but efficient implementation is key,” he remarked.

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He further emphasized the importance of aligning infrastructure projects with tangible economic benefits.

“Projects should not be allocated based on external motivations or percentages stakeholders gain but on their cost-benefit analysis and potential impact on national development. For example, the revenue potential of infrastructure like roads should be carefully evaluated to ensure sustainable economic returns,” he explained.

Prof. Mensah’s call for commercialised expenditure highlights the need for strategic fiscal management as the government seeks to balance tax reliefs, resource limitations, and developmental goals.

Tags: Government expenditureProf Lord MensahProf. Lord Mensah Advocates Commercialising Government Expenditure to Enhance Revenue Generationrevenue generation

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