Prof. Asuming identifies three key dimensions to Ghana’s economic challenges

Professor Patrick Asuming, an Economics and Development professor at the University of Ghana Business School has identified three core challenges facing Ghana’s economy: a structural fiscal problem, an unsustainable debt burden, and excessive discretionary power in granting tax exemptions.

He argued that Ghana’s predominantly informal economy hinders effective tax collection, forcing reliance on indirect taxes, while the small-scale agricultural sector remains under-taxed.

Additionally, he noted that the current debt crisis is driven by commercial borrowing at exorbitant rates—unlike previous crises that benefited from debt relief programs.

Furthermore, political actors’ unchecked power to grant tax exemptions has widened revenue gaps and weakened fiscal stability.

Asuming called for fundamental reforms, including broadening the tax base, improving tax efficiency, strengthening governance, and reducing political interference to ensure sustainable economic recovery.