Director of the Institute of Statistical, Social, and Economic Research (ISSER), Professor Peter Quartey, has emphasized the need for the government to devise innovative ways of boosting domestic revenue without increasing taxes on Ghanaians.

Speaking on Joy FM’s Super Morning Show, the economist underscored the importance of enhancing the efficiency of the tax system through digitalization to improve revenue collection and reduce human intervention.

Prof. Quartey acknowledged that the Ghana Revenue Authority (GRA) and other institutions have already taken steps toward digitizing the tax system, but he stressed that these efforts should be intensified, particularly to include the informal sector.

"We need to raise more revenue domestically, not by imposing higher taxes but by making the existing tax systems more efficient, and we’ve started that with digitization which GRA and the others are doing, and I think we need to deepen that," he stated.

He further highlighted the issue of human discretion in revenue collection, which he believes hampers the effectiveness of the tax system.

"We need to remove the human interface. There is so much discretion when it comes to raising revenue in the country," Prof. Quartey added.

His comments come in the wake of a keynote speech by Lord Paul Boateng, a Member of the House of Lords in the United Kingdom, at a leadership lecture at the University of Professional Studies, Accra (UPSA).

Lord Boateng argued that Ghana must move away from reliance on foreign aid to achieve substantial growth, as dependence on external assistance impedes progress.

Prof. Quartey concurred with Lord Boateng, stating that enhanced domestic revenue generation could reduce the country's dependence on external funding. He also pointed out that a crucial step towards financial independence is for the government to curb its expenditure.

Despite low revenue generation, Prof. Quartey criticized the government's pattern of increasing expenditures in its annual budget statements. He referred to budget statements from 2022 and 2023, questioning the logic behind significant expenditure hikes in times of revenue challenges.

"We also need to look at our expenditure. I don’t think we are getting value for money for the expenditures, especially for the procurement of goods and services," he said.

He expressed surprise at the government's decision to increase expenditures by substantial percentages during difficult times.

"It surprises me that in times of difficulty like this, if you look at the budget statement from 2023, 2022, and even before that we increased expenditure, sometimes, 42%, 30% and you ask yourself, if you are struggling to raise revenue yet your expenditure is still going up, how do you address all the beautiful things you raised in the Ghana Beyond Aid document? We need to go back to the drawing board," Prof. Quartey remarked.

In conclusion, Prof. Quartey called for a reassessment of the country's financial strategies, urging the government to enhance the efficiency of its tax system and manage its expenditures more prudently to realize the vision of a 'Ghana Beyond Aid.'