World Bank Forecasts 0.6% GDP Revenue Boost for Ghana in 2025
The World Bank has projected that Ghana could unlock an additional 0.6% of GDP in revenue by 2025—if the government fully enforces the tax measures outlined in its 2025 budget.
The World Bank has projected that Ghana could unlock an additional 0.6% of GDP in revenue by 2025—if the government fully enforces the tax measures outlined in its 2025 budget. This projection, revealed in the Bank’s latest Ghana Economic Update, aligns with the fiscal targets of the IMF-supported Extended Credit Facility (ECF) programme and signals a potential turning point in Ghana’s revenue mobilisation strategy.
At the heart of the recommendation is a call for decisive implementation of reforms, particularly around tax exemptions and public financial management. The World Bank emphasized that full enforcement of the tax exemption law, coupled with the creation of a comprehensive tax expenditure register, would significantly enhance transparency and accountability.
Robert Taliercio, the World Bank Country Director, noted that Ghana’s revenue potential hinges on modernizing its tax administration. The rollout of the Integrated Tax Administration System (ITAS) is expected to streamline tax collection, enable risk-based audits, and reduce leakages. These digital platforms would allow the Ghana Revenue Authority to monitor transactions in real time and broaden the tax base without disproportionately burdening compliant taxpayers.
Beyond tax reforms, the Bank urged the government to adopt robust public financial management systems. This includes full integration of the Ghana Integrated Financial Management Information System (GIFMIS) and the Ghana Electronic Procurement System (GHANEPS) across all ministries, departments, agencies, and local assemblies. The report also recommends consolidating all spending accounts into the Treasury Single Account to improve efficiency and expenditure control.
In essence, the World Bank’s message is clear: Ghana’s path to fiscal sustainability lies in the full and timely execution of its 2025 budget measures. If successful, the country could not only boost revenue but also lay the groundwork for long-term economic resilience.
