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Godfred Alufar Bokpin is Professor of Finance and Economics
A university professor challenged the government to show ingenuity in raising revenue to develop the country instead of resorting heavily to borrowing.
Godfred Alufar Bokpin, professor, said: "We need to mobilize the much-needed national income."
Commenting on Joy FM's Super Morning program on Tuesday's mid-year 2019 budget review, the chief financial officer of the Business School of the University of Ghana expressed his disappointment.The structure and rate of borrowing under the current government do not differ significantly from those obtained under the previous government. If the current situation persists, the next generation will remember governments for their debts rather than infrastructure development.
Finance Minister Ken Ofori-Atta announced Monday, "The stock of gross government debt in nominal terms amounted to 204 billion GHG (US $ 38.7 billion) at the end of June 2019, which represents 59.2% of GDP.
The increase in debt, said Ofori-Atta, stems mainly from the frontloading of financing requirements for 2019 in the first quarter.
Professor Bokpin argued that this was not enough.
According to him, the government must demonstrate that it has the capacity to mobilize the necessary capital to finance the investments necessary for the development of the country.
Ghana has huge potential for fundraising through taxes, ensuring that the majority of those who do not pay taxes do so, does it have any potential? declared.
This must be done alongside the blockage of leaks and corruption in the Ghana tax administration.
"You can talk about corruption in our revenue administration. The elites who ended up on boards of directors for which the exemptions are very difficult to rationalize.
Why do I say it? We have a highly marketed and monetized democracy. it's up for grabs. Soon, our morality will be lost to the highest bidder, "he said.
In approving the Parliament of the total revenues and subsidies received for the first half of the year, the Finance Minister said that these revenues amounted to 22.8 billion GH ¢. This target was lower than the 27.0 billion GH ¢ target set by the government.
"Non-oil tax revenues, including taxes on income, goods, goods and services and international trade, were 9.4% lower than the target for the first half of 2019," he said. the Minister of Finance told Parliament.
Prof Bokpin believes that the government's efforts to raise taxes are not enough. Therefore, citizens must intervene to help. "It is time for citizens to submit to voluntary tax compliance to save our country," he said.
This, he said, will ensure the continuation of pro-poor policies such as free SHS.
He admitted, however, that paying taxes has never been easy. Using a biblical allegory to argue his point, he said, even in the time of Jesus Christ, the payment of taxes was a challenge to the people of his day and, therefore, he had to ask if it was legal to pay taxes.
He called on budding politicians, such as those seeking to become members of Parliament, to prove that they were paying their taxes by showing that they were filing their taxes.
This, he said, should be reflected in all sectors of the economy, including presenting proof of payment of the tax before benefiting from a national service such as registration. cars, national health insurance, etc.
Prof Bokpin added that the government must also demonstrate that taxes are used with caution.
Growth
He called on the government to spend more in the real sector of the economy to spur growth that affects the majority of people living in poverty.
"The non-oil sector has not responded to the growth of the economy because the government has significantly under-spent in the areas that stimulate growth, "he added
According to him, the oil and gas sectors are currently contributing to economic growth.
According to Bokpin, this growth "is not sustainable and does not create jobs. Growth must occur in real sectors. Current growth favors investors, not the ordinary person. "
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