Prof Bokpin urges shift from taxation to production in 2025 budget

Economist and senior lecturer at the University of Ghana, Professor Godfred Bokpin, has called on the government to reduce its reliance on taxation and implement policies that drive production and economic growth.

Speaking in an interview on Channel One, on Monday, March 10, 2025, ahead of the budget presentation, Prof Bokpin said both major political parties had acknowledged that the economy was overtaxed and had pledged to shift towards production-driven policies.

He expects the 2025 budget to reflect this promise.

“Given that both parties agreed that the economy was heavily taxed and pledged to transition from taxation to production, I expect the budget to outline clear tax revisions,” he stated.

He also called for the removal of the COVID-19 levy, arguing that it was part of the government’s 120-day social contract with Ghanaians.

According to him, the state can recover lost revenue through improved tax compliance and administrative reforms rather than additional levies.

Prof Bokpin stressed the need for broader fiscal adjustments, saying the budget should not only review taxation but also curb government spending.

“The government has indicated plans to cut wasteful spending, but we need to see real figures in the budget. It’s not just about central government; state-owned enterprises must also operate more efficiently,” he said.

He further noted that Ghana’s economic challenges stem from an imbalance between aggregate demand and supply.

To address this, he urged the government to adopt policies that expand production, create jobs, and promote long-term economic stability.

As the Finance Minister prepares to present the 2025 budget, expectations remain high, with many hoping for policies that reduce the tax burden while supporting economic growth.