Vice President Dr. Mohammed Bawumia, has revealed plans to realign government expenditure towards the private sector, promising significant fiscal reforms should he be elected President in the upcoming December 2024 elections.
Dr Bawumia articulated a vision where the government reduces its expenditure to between 3% and 5% of GDP, translating to approximately GHS 30 billion in savings.
“I am of the firm view that we need to realign government expenditure towards the privacy sector because the government does too much, we should get the private sector to be involved and take the burden off the government,” he quipped.
“If elected president in the 2024 elections I reduce government expenditure to between 3-5% of GDP which is about GHS 30bn in savings and allow the private sector to spend on projects,” he added.
The Vice President’s proposal aims to alleviate the government’s financial burden load, allowing private enterprises to spearhead development projects that would have otherwise been undertaken by the Government.
Further elaborating on his fiscal strategy, Dr Bawumia underscored the necessity of a comprehensive tax and economic reform agenda designed to enhance business growth and competitiveness in Ghana.
He criticized the current tax structure as inadequate, proposing the adoption of a flat tax system akin to Estonia’s simplified tax regime. This would simplify tax compliance and potentially stimulate economic activity by reducing the tax burden on businesses and individuals.
The Vice President also promised a tax amnesty in 2025, aimed at resetting the financial landscape and encouraging compliance. This initiative would offer businesses and individuals a clean slate, thus boosting economic participation and growth.
The Vice President’s fiscal vision aligns with broader macroeconomic goals, as Ghana seeks to stabilize its economic framework amidst global uncertainties. Dr Bawumia’s comments also reflect a strategic pivot towards private sector empowerment, resonating with the summit’s theme, “Reigniting Business and Economic Growth: Charting a Path Forward.”
With Ghana’s economy facing challenges from inflation and debt, Dr Bawumia’s proposals are poised to redefine fiscal policy and economic strategy. The Vice President’s commitment to reducing government expenditure and introducing sweeping tax reforms marks a significant shift in economic policy, aiming to foster sustainable growth and private sector development.
Dr Bawumia’s assertions at the Summit suggest a transformative approach to governance, advocating for a leaner government role and greater private sector participation, a move that could potentially reposition Ghana’s economic trajectory towards sustained prosperity and stability.