Financial Analyst urges diversification of Ghana’s revenue sources

Financial analyst Yaw Appiah Lartey has stressed the need for urgent action to address Ghana’s growing revenue generation concerns.

Speaking on Morning Starr with Lily Mohammed, he highlighted that while the country's Gross Domestic Product (GDP) is growing, tax revenue is not increasing at the same rate, creating a significant gap between economic growth and tax collection.

Lartey urged the government to focus on reducing revenue leakages and diversifying income sources. He also recommended negotiations with the International Monetary Fund (IMF) and external creditors, suggesting that the government still has significant work to do to secure additional financial support.

Lartey pointed out the vulnerability of Ghana’s taxation system, noting that 77% of government revenue comes from taxes, a concentration that poses a serious risk if tax revenues decline. He warned that the country must diversify its revenue sources to avoid potential economic instability.