The University of Professional Studies, Accra (UPSA), has suggested to government, some short to medium-term measures aimed at reducing the country’s debts, improving revenue generation and reducing the tax burden on Ghanaians and businesses.
The measures proffered by the University, follows observations of policies outlined in the 2021 Budget and of which it asserts are challenges going to bedevil the implementation of the budget.
Measures proposed to government by the institution of higher learning, address problems in the area of expenditure, public debt and revenue generation.
In the area of revenue generation, UPSA urges government to consider reintroducing the luxury vehicle tax as way of widening the tax base. Efforts at collecting property tax should also be intensified by leveraging on the national digital property addressing system.
The University further urges government to find creative ways of taxing online SMEs to improve its revenue generation capacity as they could become very important sources of revenue for government.
Adding that, government improve on its tax compliance measures to significantly reduce tax evasion in the country. According to UPSA, compliance to tax measures can be achieved by enhancing the country’s digitization drive in tracking revenues and tax collections in both formal and informal sectors.
In the area of government expenditure, government is advised to stimulate the economy by investing or spending significantly in sectors that are growth-driven, sectors such as agriculture and industry.
Government is also advised to ensure the timely continuity or execution of contracts awarded to avoid unnecessary cost accruing from penalties and judgment debts.
Also, the Phase II of the Ghs 100 billion Ghana CARES programme should be implemented with a broad stakeholder engagement and within well-targeted spending lines.
With regards to public debt, government is advised to make ‘smart borrowings.’ Borrowings made, the University opines should be used for productive ventures rather than for recurrent expenditures such as payment of wages.
Also, appropriate loan amounts should be taken if necessary, to complete projects for which such loans are contracted so that the nation can reap the full benefits, further urging prudent management of borrowed monies.
“While the 2021 budget contains enough policy directions to overcome the challenges confronting the economy, more focused effort in key areas with multiplier effects are required. We are of the view that, these three items are important for the sustainability of the budget, enhancing revenue mobilization, prudent expenditure of available public funds, management of the fiscals of the economy including enhancing public institutions, using competent personnel, stemming up the corruption avoidance efforts, among others,” concluded the University in its analysis of the 2021 Budget Statement presented to Parliament by Caretaker Finance Minister, Osei Kyei Mensa-Bonsu.
UPSA’s analysis of the 2021 budget statement and the proferred short to medium term measures to government is in line with the objectives of the UPSA Economic Dialogue – a platform to contribute meaningfully to Ghana’s economic policy and discourse – to explain the positives, negatives, and the overall impact of the budget on the citizenry.
The dialogue series focused on sharing effective alternatives that government can consider to achieve its targets pertaining to revenue, expenditure and debt as outlined in the 2021 budget.