ISSER advocates enhanced revenue mobilization in 2027 budget

The Institute of Statistical, Social and Economic Research (ISSER) has urged the government to focus on revenue mobilization and expanding the tax base in the 2027 national budget. This recommendation comes after ISSER released its State of the Ghana Economy Report 2025, which analyzed Ghana's fiscal consolidation in 2025.

The report revealed that the economy in 2025 was primarily driven by expenditure restraint rather than increased revenue mobilization. For instance, total grants and revenue constituted 16.1 percent of GDP, while capital expenditure decreased from 2.5 percent to 1.4 percent of GDP. These developments raised concerns about public investment. Although the fiscal adjustment and appreciation of the cedi were positive outcomes, the high public expenditure restraint also impacted households.

Based on these findings, ISSER suggested that the government should bolster revenue mobilization, broaden the tax base, enhance compliance, and reduce revenue leakages. They also emphasized the need for productive investment by improving expenditure efficiency while preserving priority infrastructure and social spending. Furthermore, ISSER urged the government to maintain fiscal discipline by strengthening commitment controls, preventing arrears accumulation, and managing debt refinancing risks.

In conclusion, ISSER stated that while Ghana's fiscal consolidation was significant in 2025, it will require stronger revenue mobilization in 2027 to sustain this consolidation without compromising productive public investment.