Economist and Lecturer at the University of Ghana Business School, Professor Godfred Bokpin has raised concerns over the cost of Ghana’s governance, arguing that it is a major factor impeding the country’s development.
Speaking on Channel One TV’s special coverage of the 2025 Budget Statement and Economic Policy presentation, Prof. Bokpin noted that the growth in the public sector, particularly state-owned enterprises, has imposed significant costs on taxpayers.
Prof Bokpin cautioned that the high cost of governance poses a significant challenge to the country’s development as all funds accrued are channeled into running the public sector to the neglect of developmental policies and projects.
According to the economist, the cost of Ghana’s governance is overwhelming, thus, regardless of tax revenue collected, such a system would hinder development.
“If you look at the growth in public sector, state owned enterprises that imposes cost on the tax payer, you will be amazed and all that we are doing is to make sure that the tax revenue we collect is just sure that we manage the cost of our democracy and therefore we leave very little for growth enhancing spending.
“In the last 15 years, if you look at the growth in staff strength of certain state-owned enterprises, talk about GNPC, the rest of them. In the last five years, we have created Deputy CEO levels. Look, you will be amazed. At the end of the day, the cost of our governance is so huge. If you have such a system, it doesn’t matter the amount of tax revenue you will collect, you won’t get the development,” he said.
‘Tax should be an enabler, Not a hammer nailing businesses and households’ – Prof Bokpin
