Dr. Seyram Kawor, Senior Lecturer in the Department of Finance at the University of Cape Coast,
Dr. Seyram Kawor, Senior Lecturer in the Department of Finance at the University of Cape Coast, has praised the government’s revenue mobilization measures outlined in the 2024 Mid-Year Budget Review.
During a telephone conversation with GBC Radio Central’s Central Morning Show on Thursday, July 25, 2024, Dr. Kawor commended the expansion of the electronic VAT system, noting its significant potential to contribute to the country’s revenue targets.
Assessing the 2024 Mid-Year Budget Review, Dr. Kawor emphasized the merit of boosting tax collectors’ morale through incentives as a strategy for increasing revenue.
Regarding the government’s intention to reintroduce road tolls in 2025, Dr. Kawor supported the decision but criticized the initial cancellation, which he argued resulted in financial losses. He described the cancellation reasons as “uneconomical and untenable.”
“We invested in electronic tolling equipment, and abandoning them was improper. If the government had doubled the tolls, Ghanaians would have adjusted, positively impacting the country’s revenue,” Dr. Kawor stated.
Addressing the $8 billion gains from the Debt Exchange Programme with external creditors, Dr. Kawor acknowledged it as positive news but cautioned against over-celebration. “These are debts the country cannot currently repay. The gains from exchange rate volatility don’t affect our creditors since the loans are denominated in dollars, benefiting the creditors,” he explained.
Dr. Kawor encouraged the government to find innovative ways to ensure timely debt servicing. He suggested reactivating the sinking fund as outlined in the Public Financial Management Act, to accumulate and use funds to repay debts when due.
He also urged the government to improve macroeconomic indicators, highlighting that the current exchange rate of ¢15 to a dollar remains high and needs to be reduced.
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