My concern is that the IMF is regulating Ghana’s economic affairs; income is not the problem – Bokkpin
Financial economist, Professor Godfred Bokpin, has expressed concern about the current structure of the International Monetary Fund’s (IMF) support program for Ghana over the next three years. The program, which is mainly based on revenue regulations, has not been properly designed, he said, because Ghana’s problem is not mobilizing revenue but spending it.
Spending is characterized by many wasteful and corrupt practices, he said. Professor Bokpin said the way forward is for the government to adopt. Lean efficient ways and ensure better value for money every time, similar to practice in Singapore and Malaysia. “Because we don’t generate enough domestic revenue and that’s not the whole problem.
And I said before that if you look at the tax-to-GDP ratio of Malaysia and Singapore, it’s actually almost below 15%. “At one point, Ghana’s tax-to-GDP ratio was higher than that of Malaysia and Singapore. So you can see that Malaysia and Singapore have evolved from leaning, to more efficient and better value for money government,” he added.
Professor Bokpin further points out that while encouraging the government to do more in revenue management, the government must also be aware of the waste in the system.
“As far as we encourage the government, that’s why I have a bit of a problem with the IMF program. Once your diagnosis of the problem is that we don’t have a lot of income, that’s why at Why do we face these challenges In this case, the solution will also be heavily revenue-based.
A close examination of the IMF staff report on Ghana indicates that much of the economy’s way forward depends on improving revenues. For example, the IMF said its staff supported the government’s preference for a financing strategy based on a significant increase in revenue.
Given Ghana’s low revenue-to-GDP ratio and the need to create space for higher development spending in the medium term.
