In the realm of economic dynamics, the role of taxation often becomes a focal point for both policymakers and citizens alike. Let’s delve into some succinct analysis based on data gleaned from the Bank of Ghana’s website.
In the fiscal year 2016:
- Ghana’s total tax revenue stood at a notable $6 billion.
- Concurrently, disbursements for government employee salaries amounted to $3.3 billion.
- Government expenditures on interest payments for loans reached $2.5 billion.
- The combined total of these two significant outlays summed up to $5.8 billion.
Fast forward to 2021:
- A commendable growth in total tax revenue saw it escalate to $9.3 billion.
- Salaries for government workers experienced an increment, surging to $5.2 billion.
- Simultaneously, government allocations for interest payments on loans reached $5.5 billion.
- The aggregate of these two critical disbursements now totaled $10.7 billion.
This brief snapshot raises a fundamental question: how does the government manage its fiscal responsibilities, particularly in paying salaries and executing essential functions? The crux lies in the dichotomy between raising revenue through taxes or resorting to borrowing.
One noteworthy fact is the surge in government worker salaries, witnessing a $1.9 billion augmentation from 2016 to 2021. Although data for the subsequent years, 2022 and 2023, are unavailable on the Bank of Ghana website (yet), the narrative accentuates the reliance on consistent revenue growth.
In light of the prevailing economic challenges, assertions from the National Democratic Congress (NDC) on social media decrying a supposed “Tax-a-thon” by Dr. Bawumia and the government have garnered attention. It’s essential to acknowledge that, without the proactive initiative to augment taxes, the government might have faced difficulties in meeting its salary obligations.
As the nation undergoes annual growth, the demand for increased funds becomes imperative to sustain this trajectory. The tough reality is that public servants, deserving of salary raises, cost of living adjustments (COLA), and other benefits, necessitate financial support. The pertinent question emerges: how can these financial commitments be met without a proportional increase in taxation?
On Earth, humans hold two distinct covenants. One is a spiritual pact with God, mandating the payment of a tithe (10%), as elucidated in the Book of Leviticus. The second covenant is a civic duty towards our government, obligating the payment of taxes for the maintenance and development of our nation, as enshrined in our constitution.
Amidst ongoing debates, the clarion call remains on demanding accountability from the government and insisting on tangible value for the taxes paid. Let’s dispel any negative connotations surrounding taxes; it stands as a preferable alternative to excessive borrowing, which tends to devalue our currency, whereas taxation fortifies it.
As we approach the electoral landscape in 2024, the leadership qualities of Dr. Bawumia come under scrutiny. Acknowledging the strides made, it is incumbent upon us to weigh the merits of such decisions. As the NDC has acknowledged, Dr. Bawumia has entered the record books with his bold steps in fiscal policies, and it is incumbent on all of us to maintain that momentum. Indeed, it is possible.
