Economist urges examination of Tax leakages’ effects on Economic development

Renowned economic and financial analyst, Mr. Kwaku Atua, underscores the urgent need to scrutinize the repercussions of tax leakages on Ghana’s economic progress.

Mr. Atua highlights the detrimental influence of tax evasion and avoidance on key economic indicators such as gross domestic product, inflation, and unemployment rates. He emphasizes that the failure to address significant tax leakages hampers the nation’s ability to achieve its developmental objectives.

Furthermore, Mr. Atua advocates for the judicious utilization of tax revenues to enhance essential services such as healthcare and education. By doing so, he believes Ghana can reduce infant mortality rates and foster greater tax compliance among citizens.

Reflecting on Ghana’s recurrent reliance on the IMF for economic assistance, Mr. Atua identifies a pattern of governmental shortcomings in building a resilient economy capable of withstanding internal and external shocks. He attributes this trend to a lack of fiscal discipline and transparency in expenditure.

In an exclusive interview with Apiah-Kubi on Fabea FM, Mr. Atua emphasized the importance of fiscal responsibility and prudent debt management in Ghana’s engagement with international financial institutions like the IMF.

He suggested strategies such as reducing domestic borrowing and adhering to fiscal responsibility laws to improve economic management.

Additionally, Mr. Atua condemns the misallocation of funds towards abandoned government projects, citing it as a leading cause of economic crises.

He called upon the government to engage stakeholders and prioritize taxpayers’ contributions towards sustainable economic development.

Through his insights, Mr. Kwaku Atua provides valuable perspectives on the imperative of addressing tax leakages to foster robust economic growth and stability in Ghana.

Source: Myrepubliconline