Research Consultant, Dr. Isaac Nyame, has warned that Ghana’s mounting debt is diverting tax revenues away from education, health, and social protection, depriving citizens of critical services despite consistent tax collection.
Speaking at the Validation Workshop for the Fair Tax Monitor Report – Ghana, he stressed that most of Ghana’s tax revenues are being channelled into debt servicing rather than improving the lives of citizens.
The Validation Workshop was organised by Oxfam in Ghana, which also funded the research for the Fair Tax Monitor Report – Ghana.
“This perhaps suggests that much of Ghana’s tax revenue over the years has gone into paying interest instead of providing essential services,” he said.
He noted that Ghana’s debt-to-GDP ratio stood at 85.7 per cent in 2022, a sharp increase from 2017 levels, underscoring the country’s heavy reliance on borrowing to finance public expenditure.
“As a country, we cannot depend on external support forever. We must strengthen domestic resource mobilisation and take care of ourselves,” he emphasised.
The Fair Tax Monitor findings showed that government spending on critical sectors remains worryingly low.
Between 2015 and 2023, education received only 3.2% of GDP, health care just 3%, and social protection a mere 1.1%.
Agriculture—the backbone of Ghana’s economy—fared worst, receiving only 0.1% during the period under review.
“These figures are not impressive at state,” he said, warning that inadequate investment in social sectors undermines equitable growth and deepens inequality.
On transparency and accountability, he observed that while Ghana has made progress in digitising tax administration, challenges remain.
He added that limited use of local languages, lack of disaggregated reporting, and weak enforcement of financial laws continue to erode trust in the system.
“Until we address these weaknesses holistically, we will keep coming back to the same conversations,” he cautioned.
The Fair Tax Monitor scored Ghana 6.47/10 on tax progressivity, 5.08 on efficiency and leakage, and just 2.9 on transparency and accountability—highlighting structural weaknesses in the system.
To address these gaps, Dr. Nyame recommended the full implementation of the Tax Exemptions Act, gender-responsive and targeted tax policies, stronger enforcement against financial irregularities, and reforms to expand the tax net to cover the informal sector.
He further urged the government to publish the beneficiaries of tax exemptions along with justifications, linking all exemptions to measurable improvements in education, health, agriculture, and social protection.
“There is money in Ghana; what we need is stronger enforcement, transparency, and the political will to ensure tax revenues truly support socioeconomic development,” he stressed.
Country Director of Oxfam Ghana, Mohammed-Anwar Sadat Adam, in his remarks, underscored the importance of the Fair Tax Monitor as a tool for assessing whether Ghana’s tax system truly delivers equity and justice.
He explained that the tool not only examines revenue collection but also evaluates how taxes are spent, questioning whether public resources are used fairly, transparently, and accountably.
“In the past, we were hesitant to talk about the facts, but the Fair Tax Monitor gives us evidence-based insights to reflect critically on whether our tax policies are progressive and whether spending aligns with equity and social justice,” he said.
He noted that similar assessments have been conducted in countries such as Uganda, Nigeria, Kenya, and Zambia, and stressed that Ghana must also take lessons seriously.
According to him, the report is particularly timely as the country faces rising inequality and constrained public services.
“This report invites us to ask two critical questions: are we taxing fairly, and are we spending justly?
The answers to these will form the foundation for building a new social contract rooted in equity and trust between citizens and the state, ” he said.
