His remarks come amid the government’s pledge to scrap several levies, including the e-levy, COVID-19 levy, and betting tax.

In an interview on Joy FM’s Midday News on Monday, ahead of the budget presentation, Prof. Bokpin noted that while expectations are high, they must be tempered with realism, considering this will be the new administration’s first major budget.

“My expectation is that they will stay on the path of fiscal consolidation, primarily using taxation as a key tool. However, I anticipate some revisions to the tax regime, particularly the removal of the e-levy and COVID-19 levy,” he said.

“With the betting tax, I believe the government should reassess its approach due to the behavioral implications and other related factors.”

He further emphasized that while the emission tax remains on paper, it has not generated any revenue and therefore requires no immediate adjustments.

Addressing concerns about potential fiscal losses from the removal of these taxes, Prof. Bokpin estimated that revenue losses could exceed GH₵ 7 billion. However, he suggested these losses could be offset through administrative and compliance reforms within existing tax structures, particularly corporate income tax and VAT, both of which he described as inefficient.

“If we can improve VAT efficiency by even 15%, it will generate more than enough revenue to cover these losses,” he explained. “We should not view the removal of these taxes as losses but rather as incentives to households and businesses, which will stimulate consumption and promote economic growth.”

Prof. Bokpin also underscored the need for the budget to focus on cost savings through the elimination of wasteful government expenditures and the adoption of a lean government approach. He stressed that clear projections for cost-cutting measures and their impact on fiscal space in 2025 and beyond are essential.

Additionally, he urged the government to provide a transparent assessment of the country’s fiscal position as of the end of 2024, acknowledging that Ghana is unlikely to meet its revised target of a 3.5% deficit-to-GDP ratio and a 0.5% primary surplus. He called for clarity regarding arrears from state-owned enterprises and other financial commitments.

“We need an honest, data-driven assessment of our fiscal situation,” Prof. Bokpin said. “It is crucial to tell the story as it is without exaggeration so we can make informed policy decisions.”

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President John Dramani Mahama has reiterated that his administration has no immediate plans to extend Ghana’s ongoing $3 billion Extended Credit Facility agreement with the IMF.

Speaking in an interview with Bloomberg TV at the Munich Security Conference, he stressed that his government remains committed to executing the existing programme without seeking an extension.

Addressing the possibility of future modifications, President Mahama acknowledged that an extension could be considered if necessary but insisted that the current focus was on implementing the agreed measures.

Speaking on Joy FM’s Super Morning Show during a discussion on the economy, Prof Godfred Bopkin said, “To think about it that we are exiting the programme in May 2026 conveys considerable risk to the market,” he noted.

Prof Bopkin highlighted that the original financial programme, which aimed to restore economic balance, was designed with a follow-up extension or successor plan in mind. However, given the changing circumstances, he acknowledged that the nation now finds itself needing to adjust the course.

“What that will mean is that we have to then start another programme. If you look at the original programme, the programme was designed with an extension or immediate or a successor right after,” he explained

Prof Bopkin further estimated that it could take between three and four years before the country can access the international capital markets again. This delay, he noted, is a necessary period of rebuilding and stabilizing the economy.

“Remember that we are not able to go to the international capital market per the original programme until 2027,” he added.

The government had previously restructured its debt to avoid default, but the lengthy and complex process of recovery means that the nation will need time to rebuild its financial standing.

“The World Bank was advising us…that’s just consistent with the period,” Prof Bokpin added.

“Once you restructure your debt with the manner that ours took, we are looking at over 3-4 years before the market will receive you favourably,” he concluded.

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The Minister of Finance, Dr Mohammed Amin Adam, apologised to Ghanaians for the hardships they are experiencing due to the Domestic Debt Exchange Programme (DDEP).

His apology comes after the Assin Central MP, Kennedy Agyapong advised members of the ruling New Patriotic Party (NPP) to admit their mistakes in the management of the economy and apologise to Ghanaians.

Prof Bokpin argued that, the apology does not alleviate the country’s ongoing economic difficulties, which he believes could have been avoided with more proactive government measures.

According to him, while the apology was a step in admitting the mistakes, it should be accompanied by concrete actions.

Speaking on JoyNews’ Newsfile on August 10, he said, “Honourable minister, yes, you have made this apology but I want to believe it is not enough. If this was a government position and has been reflected on carefully, then probably this will come with certain practical steps that government will take.”

“The manner in which it was done clearly takes a lot away from this humility. To the extent that the current minister of finance wasn’t really the architect behind this DDP and all of that. I want to believe that this apology is not properly motivated and it should reflect a government position and a party position.”

He said that Ghana’s high fiscal deficit in 2020, worsened by the misuse of COVID-19 funds, which has contributed to the country’s current economic challenges.

“If you go into the details and you see the extent to which we abused the covid and the fiscal deficit that Ghana recorded in 2020, it was one of the highest in the whole of Africa and Ghana could not recover from that excess which took us to the 17^th IMF supported programme,” he said.

Source: Myjoyonline.com

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According to him, the current economy has disproportionately affected the middle class, significantly reducing their purchasing power.

He further highlighted the widening economic disparity accompanying the country’s growth.

“The development we’ve seen from 2021 has actually impacted the middle class more and has dwarfed our purchasing power. If you measure 2017 purchasing power to this year there’s been an enormous difference. So a lot of upper and lower middle class are sliding down,” he said.

His statement comes after the government’s repeated claims of economic recovery.

Speaking on Joy FM’s Super Morning Show, Prof Bokpin noted that despite the optimistic reports of economic growth and recovery, the reality for many Ghanaians is starkly different.

He emphasised that the recovery has been costly and uneven, leaving millions of citizens behind.

“So even now that we are talking about economic growth and recovery, you can see it is costly. It is a recovery that has left millions of Ghanaians behind,” he noted.

Prof Bokpin further referred to the 2022 World Bank Report, which revealed that inflation had driven over 850,000 Ghanaians into extreme poverty.

“So the question is this [economic] recovery we are celebrating, has it lifted those people out of extreme poverty?” he quizzed.

The President, while delivering this year’s State of the Nation Address said the macro-economy was much stronger at the end of 2023 than the previous year as indicators were showing positive signs.

However, reacting to this on JoyNews’ PM Express, Prof Bokpin was skeptical about the country’s economic growth.

He pointed out that since the inception of the Fourth Republic, Ghana has seemingly been “laying a foundation” without clear progress towards sustainable development.

“I don’t know what kind of building we want to put up on that foundation that it has taken us 32 years, and we are still laying a foundation, restoring, and rebuilding,” he remarked.

The Professor highlighted the recurring theme of rebuilding and restoring that emerges every four years during political cycles.

He questioned the tangible impact of these efforts on the lives of Ghanaians, urging a focus on measuring the improvement in the standard of living and the number of people lifted out of poverty in recent years.

Prof Bokpin drew attention to a significant shift in economic dynamics, particularly the events from the third quarter of 2021 till date, which led to the implementation of the Domestic Debt Exchange Proggrame (DDEP).

He emphasised the unprecedented nature of these developments in Ghana’s history and stressed the need to carefully evaluate the impact of the DDEP alongside the burden of numerous taxes borne by Ghanaians.

He also observed that there was a growing desire among professionals to leave the country.

“Since I started monitoring data and interacting with people in this country, I have never seen in my life a time where so many people want to leave this country.”

This trend, according to Bokpin, raises questions about the perceived progress and quality of life in Ghana.

While acknowledging the number of projects and physical developments in successive State of the Nation’s Addresses, Bokpin underscored a disconnect in understanding how these projects collectively improve the lives of citizens.

“At the center of it all, whether we like it or not, all of it is for human beings,” he stated.

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According to him, considering Mr Ofori-Atta’s track record before his recent appointment, he does not think Ofori-Atta deserves to be reappointed to a higher position.

Speaking on JoyFM’s Top Story on February 26, Prof Bokpin said he fervently supported the former Finance Minister when it was first announced that he would head the Finance Ministry, because he was amongst the most qualified. However, he argued that in recent years and more particularly given the legacy he leaves behind, he has failed to live up to expectation.

“I respect Honourable Ken Ofori-Atta. Look, when he was appointed I supported his appointment looking at his performance in the private sector, we couldn’t have gotten it better, right? But overall let me tell you, what we see right now really does not give a compelling reason for him to be given another responsibility in the government,” he said.

Professor Bokpin explained that leaders are usually visionary individuals who are able to anticipate problems and adopt strategic solutions. However, during the period when the Finance Minister was expected to exhibit these qualities, he let the country down.

He added that this has led to the country’s economic hardship.

“Ghana and Kenya exited Covid-19 with similar economic fundamentals, similar challenges. The difference between Kenya and Ghana, as we speak right now, was simply because Kenya was a bit more proactive in reaching out to the IMF for fund-supported programmes right after Covid-19.

“But Ghana, that is where I think that Honourable Ken Ofori-Atta failed Ghanaians because part of leadership is to recognise the signs and the magnitude before the average Ghanaian gets to know.

“And the failure on the part of the Finance Minister then and the government overall in being proactive in reaching out to the IMF actually brought so much hardship on Ghanaians and I have said it, I won’t run away from that,” he added.

On February 15, President Akufo-Addo appointed the former Finance Minister as Senior Presidential Advisor and Special Envoy for International Finance and Private Sector Investments. Many individuals raised concerns about why he must be elevated to a new position.

Individuals and grassroots organisation, the Alliance for Foot Soldiers and Advocacy, have since pushed for the revocation of the appointment.

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He touted his administration as one that will vigorously institute home-grown measures to ensure that country is self-sufficient.

In this light, the ‘Ghana Beyond Aid’ mantra was birthed by the Akufo-Addo government.

However, an economist at the University of Ghana believes the essence of the slogan is lost.

“Ghana beyond aid is already beyond us. Of course, we knew from Day 1 that Ghana Beyond Aid was not anti-aid of aid rejection. It is actually in need of more aid,” he said on JoyNews.

Prof Godfred Bokpin is of the view that this commitment is out of Ghana’s reach as the country battles for a lifeline in a desperate request for an economic bailout from the International Monetary Fund (IMF).

The lecturer was speaking on Newsfile on Saturday, August 13, 2022.

“Over the years, we have not been able to collect sufficient tax revenue relative to the size of our economy. That’s a big problem. While that is a problem, we have been largely inefficient at the expenditure side also,” he told Samson Lardy Anyenini.

He suggested that blocking such leakages in the revenue collection regime is one sure way of mitigating the country’s financial woes.

According to him, the rate at which inflation is rising and the taxes imposed on the populace is quite worrying.

Speaking on Newsfile on Saturday, Prof Bokpin explained that the increase in taxes and cost of living makes living worse for people on fixed pensions.

“When I went to my village, I saw this man walking by the road, and he actually was stopping my car. When I stopped, this was my teacher in JHS 1. This man told me he had gone on pension and when he mentioned the amount to me, I almost wept.”

Prof Bokpin added that “the little I could do immediately was to give the malt I was going to take to him and asked him to join me in my car. This is somebody who has laboured for over 30 years.”

He bemoaned the fact that teachers who had worked all their lives go home with nothing.

His comment followed recent rise in inflation and the effect on the ordinary Ghanaian. Ghana’s inflation jumped to 27.6% from the 23.6% recorded in April 2022, according to recent figures from the Ghana Statistical Service (GSS).

The GSS blamed this on the increase in transport fares and food prices.

According to the Government Statistician, Professor Kobina Annim, the rate of inflations for transport (39.0%), household equipment and maintenance (33.8%), housing, water, gas, and electricity (32.3%), and food and non-alcoholic beverages (30.1.6%) were higher than the national average (27.6%).

In May 2022, 12 of the 13 divisions recorded inflation rates higher than the rolling average from June 2021 to May 2022.

Prod Bokpin noted that the average Ghanaian spends so much on consumables, making it practically difficult to save, “when you do the effective tax burden on the average Ghanaian, assuming you spend 60% of your disposable income on consumption, you look at the layers of taxes, VAT 12.5 %, GETFund, NHIL, Covid Levy and others and you put everything together you are hitting in excess of 60%, when you look at all these things there is no breathing space for the average Ghanaian.”

Prof Bokpin added that “you can understand why our savings rate in this country is very low while our investment requirement is high. This would then tend to liberalise the environment and make it conducive to foreign investors to fill the gap.”