The KPMG/UNDP 2025 Pre-Budget Survey, conducted through face-to-face interviews and online questionnaires, has unveiled potential fiscal challenges for Ghana, particularly concerning the abolishment of the E-levy and COVID-19 levy. The survey, which engaged 233 businesses across 10 sectors from February 11th to 21st, 2025, forecasts a substantial revenue shortfall of at least GHS 6.4 billion if these levies are discontinued. The findings provide crucial insights for the Ghanaian government as it prepares its upcoming budget and charts its future fiscal policies. The report underscores the need for alternative revenue generation strategies and emphasizes the importance of fiscal prudence to mitigate the impact of this potential revenue loss. Furthermore, the survey explored the potential of a 24-hour economy and identified key sectors that could drive its success.
The anticipated revenue shortfall necessitates immediate action from the government. KPMG, based on the survey findings, proposes several key recommendations. Beyond simply seeking alternative taxes, the report emphasizes the need for enhanced efficiency and transparency in revenue collection. Specifically, leveraging technology to modernize property rate administration and collection is highlighted as a key area for improvement. This could involve implementing digital systems for property valuation, assessment, and payment collection, streamlining the process and minimizing leakages. Additionally, the report suggests exploring revenue opportunities within the burgeoning digital and e-commerce sectors, ensuring that the government can capture its fair share of the growing digital economy.
The survey also stresses the importance of robust public financial management. Strengthening existing systems, plugging loopholes in public procurement processes, and curbing wasteful spending are identified as critical steps towards fiscal sustainability. These measures are crucial not only to offset the potential revenue loss from the abolished levies but also to ensure the long-term financial health of the government. Efficient and transparent public financial management practices are essential for maintaining investor confidence and fostering economic growth.
Beyond revenue generation and fiscal management, the survey also delves into the potential benefits of a 24-hour economy for Ghana. The report argues that this model could significantly boost economic activity, creating jobs and enhancing competitiveness. However, the success of such an initiative hinges on careful planning and execution. Specifically, the report recommends focusing on industries that are naturally suited to 24-hour operations, such as manufacturing, transport and logistics, healthcare, the retail and hospitality sectors, and digital services.
The rationale behind prioritizing these sectors lies in their inherent capacity for continuous operations. Manufacturing, for example, can benefit from extended production hours, leading to increased output and potentially lower unit costs. The transport and logistics sector can facilitate the smooth movement of goods and services around the clock, supporting various other industries. 24-hour healthcare services are crucial for ensuring timely access to medical care, while extended retail and hospitality hours can cater to diverse consumer needs and boost tourism. Finally, the digital services sector, by its very nature, operates across time zones and can thrive in a 24-hour economy.
The report emphasizes that the success of a 24-hour economy will depend on two crucial factors: increased consumer demand and enhanced global market competitiveness. Increased consumer demand can be stimulated by factors such as population growth, rising incomes, and changing lifestyles. Global market competitiveness can be achieved through improved infrastructure, skilled labor, and a conducive business environment. By focusing on these key drivers, Ghana can unlock the full potential of a 24-hour economy and position itself for sustainable economic growth. The findings of the KPMG/UNDP 2025 Pre-Budget Survey provide valuable insights for policymakers as they navigate the complex economic landscape and chart a course for a prosperous future.
