<<Print>>

The Pentecost University College Graduate School (PUCGS) has advised the government to reduce the number of projects in the budget to enable it spend on priority projects. Panelists at the university�s forum on Mid-Year Review of the 2014 budget statement at the KAMA Conference Centre in Accra made the observation. In a 11-point recommendation at the forum organised by the Graduate School of the Pentecost University College, the panelists observed that the 2014 budget, like most budgets, had too many projects, which by the end of the budget cycle, would remain uncompleted or unstarted. �It is advised that the government moves towards planning programme budgeting system so that in the face of resource constraint, the government can prioritise projects by selecting those with higher socio-economic impact that can be adequately completed in good time,� a statement issued by Prof. Kwame Boasiako Omane-Antwi, the Vice Rector and Dean of the university�s graduate school, said. According to the statement, the panelists including Prof. J.B.K Aheto, the chairman for the programnme, and Prof. Cletus Dordunoo, both seasoned economists, Mr Akwasi Safo Brempong and Mr Daniel Amassah Kotey, also called for tax rate reductions to encourage voluntary compliance. The event was part of the university�s contribution to national development and a platform to create awareness on tax issues in the country. Tax burden The statement said they were of the view that the tax burden in Ghana seemed to be very high�as situation that had slowed business activities in the country. �This phenomenon adversely impacts economic growth as the disposable income of tax payers is significantly reduced. Leakages in the tax system should also be plugged rather than resorting to tax rate increases,� it said. Additionally, the statement urged the government to adopt cost effective and humane measures to enhance willingness to honour tax obligations, especially at the country�s ports and bonded warehouses to ensure more resources mobilisation. It said additionally, more training must be provided to the Ghana Revenue Authority (GRA) staff to prevent loss of revenue from dubious and fraudulent transfer pricing practices by multinational organisations. Addressing concerns about waste in the public sector, it called on the government to reduce wastages in the system and concentrate on few but essential projects. �There is also the need to improve government�s revenue estimation techniques to reduce the effects of revenue shortfalls as a result of low tax base and high tax rates,� it added. On deficit financing, it said while deficit financing, in itself, was not necessarily bad, any borrowing that the government undertook must be done with clearly defined objectives. �The funds used must also be targeted towards very clear socio-economic goals for the benefit of the nation. We should also avoid locking up short-term facilities into long-term gestation projects,� it said. Supplementary budget The statement also urged the government to link the GH�2.2 billion supplementary budget to specific programmes and manage corruption. �The recent supplementary budget must be expended on specific projects which have tendency to drive economic growth and create sustainable jobs. Also, the government must improve its anti-corruption drive to increase the current low levels of confidence in the government and improve its policy credibility.� The statement also made a strong case for a quarterly budget review. �There is the strong need to continuously track the financial performance of the government of Ghana. This should be taken as a business (Ghana Incorporated) to ensure fiscal discipline, accountability, and basis for proactive decision-making.� The University described the e government�s decision to reach out to the International Monetary Fund (IMF) for a bail out as a good approach to help stabilize the economy through prudent financial management. SMEs It also urged the government to take a second look at the current circumstance of small and medium enterprises (SMEs). �At the moment, SMEs pay high rates of interest on loans from banks and other financial institutions. The government must provide cheaper means of financing for SMEs which are regarded as catalysts of business growth all over the world. It is a must for government to support SMEs in value addition or wealth creation enterprises,� the statement said. It said while participants of the forum congratulated the government for the bold initiative, they also recommended preventive measures that triggered off the difficulties in the first place. It said the school would continue to monitor the Public Financial Management System of the government and express its views as a way of contributing its quota to the development of Ghana. The statement expressed appreciation to sponsors of the event including the Institute of Chartered Accountants � Ghana (ICAG), Graphic Communications Group Ltd, New Times Corporation, KAMA Conference Centre, The Church of Pentecost � Headquarters, ACCA, Millennium Insurance Company, GTV, PUC Graduate Network Panel of Academics and Practitioners and Master of Commerce in Taxation students.