The Institute of Statistical, Social and Economic Research (ISSER) has advised government to use the 2027 national budget to strengthen revenue mobilization and broadened the tax base.
ISSER made the call after launching the State of the Ghana Economy Report 2025.
According to ISSER, a critical examination of Ghana’s fiscal consolidation in 2025 showed that the economy was driven largely by expenditure restraint rather than increased revenue mobilsation.
For example, total grants and revenue amounted to 16.1 percent of GDP while capital expenditure declined from 2.5 percent to 1.4 percent of GDP, raising concerns about public investment.
ISSER pointed out that even though the development led to public debt falling to 46 percent from 62.7 percent of GDP reflecting in fiscal adjustment and appreciation of the cedi, the high public expenditure restraint also affected households.
Providing some recommendation, the institute said government must strengthen revenue mobilization, broaden the tax base, improve compliance, and reduce revenue leakages. It added that government must enhance productive investment by improving expenditure efficiency while safeguarding priority infrastructure and social spending.
Also, ISSER charged government to sustain fiscal discipline by strengthening commitment controls, prevent arrears accumulation, and manage debt refinancing risks.
In conclusion under fiscal expenditure, the institute said that Ghana ‘fiscal consolidation was substantial in 2025 but sustaining it will require stronger revenue mobilization in 2027 without sacrificing productive public investment.