Let’s rethink revenue mobilisation strategy
As Ghana navigates the complexities of economic management, the recent cautionary assessment by Deloitte Ghana on the 2025 Mid-Year Budget Review serves as a timely reminder of the need for innovative approaches to public finance.
The government's reliance on traditional tax channels and increasing revenue targets year after year is neither sustainable nor innovative.
It is imperative that we adopt a new paradigm, one that leverages entrepreneurial finance to drive growth, efficiency and diversification in public revenue mobilisation.
The current economic landscape is characterised by structural issues such as exchange rate volatility, dependence on commodity exports and weaknesses in tax administration. These challenges underscore the need for a paradigm shift in our approach to revenue mobilisation.
The Graphic Business is of the view that rather than imposing heavier tax burdens on citizens and businesses, we should focus on adopting innovative and flexible fiscal strategies that promote growth and efficiency.
One potential solution lies in digital transformation, where the government can utilise data analytics and automation to broaden the tax base and enhance compliance without increasing rates. Tapping into the expanding digital economy and formalising taxation of online businesses and e-commerce platforms could generate significant new revenue streams with minimal public backlash.
Furthermore, improving governance and profitability of state-owned enterprises can unlock dividend streams that ease fiscal pressures. Expanding non-tax revenues through environmental levies, tourism fees, or innovative licensing can also contribute to a more resilient and diversified fiscal landscape.
The private sector and institutions such as the State Interest and Governance Authority (SIGA) have a critical role to play in this endeavour. The private sector can drive innovation, investment and economic growth, thereby expanding the tax base and generating new sources of revenue.
SIGA, on the other hand, can optimise the performance of state-owned enterprises, unlock the potential of state assets and provide sustainable financial returns.
For us, a well-regulated and vibrant private sector enhances tax compliance and transparency, thereby directly improving government revenue collection without necessitating higher tax rates. The private sector also engages in corporate social responsibility (CSR), contributing resources to community development and public infrastructure.
This contribution indirectly supports alternative revenue mobilisation by alleviating government spending burdens. Lastly, by mobilising domestic savings and strengthening capital markets, the private sector creates pools of investment capital that fuel further economic expansion and broaden the revenue base.
It is time for Ghana to adopt a new approach to revenue mobilisation, one that is innovative, flexible and growth-oriented. By leveraging entrepreneurial finance and promoting public-private partnerships, we can create a more resilient and diversified fiscal landscape that supports economic development and fosters fiscal sustainability.
The government, private sector and institutions such as SIGA must work together to achieve this vision and ensure a brighter economic future for Ghana.