BudgIT Ghana has urged the government to pair new spending in the 2027 Budget with stronger accountability measures. The civil society organization warned that ambitious spending without robust oversight could result in unfinished projects and weak value for money.
Jennifer Moffatt, Country Lead of BudgIT Ghana, stated the fiscal strategy should shift from repeatedly taxing compliant citizens. She advocated for identifying wealth and economic activity currently outside the formal tax net. This approach aims to broaden the tax base more effectively.
This recommendation comes as Ghana seeks to stabilize its public finances and enhance domestic revenue mobilization. The country has faced challenges with debt sustainability and the need for efficient resource allocation. Previous budgets have often highlighted the importance of tax reforms and infrastructure development.
Ms. Moffatt highlighted five priority areas during a civil society engagement on 2027 National Budget inputs. These included domestic revenue mobilization, VAT reforms, the Big Push Agenda, 24-hour markets, and the completion of Agenda 111 hospitals. The Women’s Development Bank was also identified as a key area for focus.
A central element of BudgIT Ghana’s proposal involves a more systematic approach to identifying high-net-worth individuals. The organization suggests leveraging data from agencies like the Lands Commission and Driver and Vehicle Licensing Authority (DVLA). This data could compare property and luxury vehicle ownership with declared taxable income.
“One thing that we can leverage will be the Lands Commission and also DVLA,” Ms. Moffatt explained. She added that DVLA data could reveal luxury vehicle registrations and their owners. Land records could further identify substantial property ownership, allowing comparison with reported income for tax purposes.
This proposal represents a shift towards compliance-driven revenue mobilization. It moves away from relying primarily on higher tax rates. Better integration of public databases could help identify economic capacity already visible through asset accumulation. This capacity is often not effectively captured by the current tax system.
BudgIT Ghana also called for policymakers to examine how international digital and platform businesses are taxed. Ms. Moffatt cited companies such as Bolt and Temu, which earn revenue from Ghana. She argued for mechanisms to capture a larger share of this locally generated economic value.
Instead of relying heavily on Value Added Tax (VAT), which consumers ultimately bear, BudgIT Ghana suggested examining withholding mechanisms. These mechanisms would apply to revenue generated within Ghana by these entities. “For the artisanal and then the international organisation, what we are proposing will be a withholding tax on their revenue,” Ms. Moffatt stated.
The implementation of such measures presents significant challenges. Poorly designed taxation of informal operators could increase compliance costs for those with volatile incomes. Cross-border digital taxation also raises questions about double taxation, jurisdiction, and whether companies pass costs to consumers. The policy test will be broadening the tax net without weakening investment incentives or creating distortions.
BudgIT Ghana reserved its strongest concerns for the government’s Big Push infrastructure program. The organization argued that the initiative’s scale requires considerably stronger disclosure. This disclosure should cover procurement, financing, and implementation details. “What we are asking for is that they publish real-time data on all ongoing projects,” Ms. Moffatt emphasized.
Such disclosure should identify project locations, contractors, implementation timelines, and financing sources. BudgIT Ghana also seeks clarity on how petroleum and other extractive revenues contribute to the program. They also want to know the role private investors play. “If that is going to be the case, we want to know how much money is allocated for which and who and who is benefiting,” Ms. Moffatt said.
Large infrastructure programs can generate economic benefits but also create opportunities for cost overruns and weak oversight. BudgIT Ghana has proposed considering a phased, region-by-region implementation model. This approach would avoid spreading construction simultaneously across too many areas, potentially improving project management and accountability.