Low tax revenue threatens Ghana’s development ambitions — ISSER
Ghana must widen its tax net and improve domestic revenue mobilisation to fund its development priorities, the Institute of Statistical, Social and Economic Research (ISSER) has warned.
Ghana faces challenges to its development goals due to insufficient tax revenue, warns the Institute of Statistical, Social and Economic Research (ISSER). The institute's 2025 State of the Ghanaian Economy Report highlights that the country's tax revenue is below the sub-Saharan African average, with tax revenue accounting for only about 30% of GDP.
This leaves the government with limited capacity to fund infrastructure, job creation, and economic growth without resorting to further cuts or other fiscal measures. Professor Robert Darko Osei, ISSER's Director, emphasized the need to broaden Ghana's tax base rather than increasing the burden on existing taxpayers. He suggested bringing more individuals and businesses into the tax system to improve revenue efforts.
The report also raises questions about Ghana's ability to generate sufficient domestic revenue to meet growing expenditure and investment needs as the economy recovers and the government aims to sustain fiscal improvements. While Ghana's fiscal position in 2025 improved through expenditure restraint, the report suggests that this approach alone will not resolve the long-term challenge of financing development.
ISSER's assessment indicates that a stronger revenue base would better equip the government to finance priorities without excessive expenditure cuts or borrowing.
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